SOLUTION: Ten thousand raffle tickets are sold for $5 each. Four prizes will be awarded: one for $5,000, one for $2500 and two for $1000. Assume that the probability that any given ticket is

Question 731979: Ten thousand raffle tickets are sold for $5 each. Four prizes will be awarded: one for $5,000, one for $2500 and two for $1000. Assume that the probability that any given ticket is selected for the $5000 prize is 1/10000,the probability that any given ticket is selected for the $2500 prize is 1/10000,and the probability that any given ticket is selected for the $1000 is 2/10000. Sidhardt purchases one of those tickets.
Answer following Questions
A) Determine his expected value
B) Determine fair price of ticket
Answer by lynnlo(4176) (Show Source): You can put this solution on YOUR website!
(a)0.1/10000
(b)$5.00
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