document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=144879>Question 144879</A>This question is from textbook <A HREF=http://www.amazon.com/exec/obidos/ASIN/0321206002/algebrahomeworkh></A><BR>\n" );
document.write( ": <I><SPAN STYLE=\"word-break: break-all;\"> not sure if this is right\r<BR>\n" );
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document.write( "6. (4 pts)  <BR>\n" );
document.write( "1000 tickets for prizes are sold for $2 each. Seven prizes will be awarded – one for $400, one for $200, and five for $50. Steven purchases one of the tickets.   <BR>\n" );
document.write( "400(1/1000) + 200(1/1000) + 50(5/1000) – 2(993/1000) = -1.14<BR>\n" );
document.write( "a) Find the expected value   expected value is -$1.14<BR>\n" );
document.write( "b) Find the fair price of the ticket.   ?????<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #105709 by </B><A HREF=/tutors/aboutme.mpl?userid=solver91311><B>solver91311(24713)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=solver91311><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=solver91311><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=105709\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> You have part a done correctly.  Steven (or anyone else for that matter) can expect to lose -$1.14 for every $2.00 spent.  In other words, the game is rigged (way, way, way) in favor of the house.\r<BR>\n" );
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document.write( "The fair price for a ticket is that price that would make the expected value be zero.  So, reuse your expected value formula, this time using a variable <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P%5Bf%5D ALIGN=MIDDLE  ALT=\"P%5Bf%5D\"   DISABLED_style= \"max-width:90%; height:auto;\" > in place of the $2 in your previous calculation and set it equal to 0:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=400%281%2F1000%29+%2B+200%281%2F1000%29+%2B+50%285%2F1000%29+-%28P%5Bf%5D%29+%28993%2F1000%29+=+0 ALIGN=MIDDLE   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "Solve for <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P%5Bf%5D ALIGN=MIDDLE  ALT=\"P%5Bf%5D\"   DISABLED_style= \"max-width:90%; height:auto;\" > and you have your fair price. </SPAN>\n" );
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