SOLUTION: 1000 tickets are sold for a charity lottery at $5 each. Three numbers are drawn at random to receive 1st 2nd and 3rd place prizes of $2000, $1000, and $500 respectively. what is th

Question 927776: 1000 tickets are sold for a charity lottery at $5 each. Three numbers are drawn at random to receive 1st 2nd and 3rd place prizes of $2000, $1000, and $500 respectively. what is the mean (expectation) from such a drawing?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
1000 tickets are sold for a charity lottery at $5 each. Three numbers are drawn at random to receive 1st 2nd and 3rd place prizes of $2000, $1000, and $500 respectively. what is the mean (expectation) from such a drawing?
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Random winnings::.......1995.....995....495....-5....
Probabilities............1/1000..1/1000..1/1000..997/1000
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E(x) = (1995 + 995 + 495 - 5*997)/1000 = -1500/1000 = -$1.50
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Cheers,
Stan H.
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