SOLUTION: 2. Suppose you buy one ticket at $3 for a raffle that contains 400 tickets, where there is one $250 prize and two $125 prizes being awarded. What is your expected net gain?

Question 664741: 2. Suppose you buy one ticket at $3 for a raffle that contains 400 tickets, where there is one $250 prize and two $125 prizes being awarded. What is your expected net gain?

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
2. Suppose you buy one ticket at $3 for a raffle that contains 400 tickets, where there is one $250 prize and two $125 prizes being awarded. What is your expected net gain?
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Random number "gains: 247:::: 122:::::122:::: -3
Probabilities:::::::: 1/400:::1/400:::1/400:::397/400
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E(x) = (247 + 122 + 122+ + 122 - 3(397))/400
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E(x) = -700/400 = -$1.75
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Cheers,
Stan H.

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