SOLUTION: If 10,000 raffle tickets are sold at $5 each, and there prizes are $5,000; $2,500; $1,000; and $1,000. what is the expected value of the tickets?
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Question 700043: If 10,000 raffle tickets are sold at $5 each, and there prizes are $5,000; $2,500; $1,000; and $1,000. what is the expected value of the tickets?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
If 10,000 raffle tickets are sold at $5 each, and there prizes are $5,000; $2,500; $1,000; and $1,000. what is the expected value of the tickets?
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Random winning values: 4995;;;;2495;;;;995;;;;995;;;;-5
Probabilities:::::::::1/10,000 for each winner and (296/10,000)for losing
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E(x) = (4995+2495+2*995)/10,000 -5(296/10,000) = 0.80 or 80 cents
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You can expect to lose 80 cents on each ticket you buy.
Cheers,
Stan H.
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