document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=204460>Question 204460</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 500 tickets for prizes are sold for $2 each. Five prizes will be awarded – one for $300, one for $200, and three for $50. Steven purchases one of the tickets. \r<BR>\n" );
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document.write( "a) Find the expected value<BR>\n" );
document.write( "b) Find the fair price of the ticket.\r<BR>\n" );
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document.write( "Not very good at these Word Problem things, but I am really trying to learn... If you don't mind showing me exactly how to do it I would really appreciate it. I really hate not getting things right the first time, but I am having alot of trouble with these word problems... </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #154368 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=154368\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 500 tickets for prizes are sold for $2 each. Five prizes will be awarded – one for $300, one for $200, and three for $50. Steven purchases one of the tickets. <BR>\n" );
document.write( "a) Find the expected value<BR>\n" );
document.write( "Let the random variable be \"gain for Steven\".<BR>\n" );
document.write( "Then the vales of x are : 298,198,48,-2<BR>\n" );
document.write( "The corresponding probabilities are: 1/500,1/500,3/500,495/500<BR>\n" );
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document.write( "The expected gain for Steven = 298(1/500) + 198(1/500) + 48(3/500) -2(495/500)<BR>\n" );
document.write( "= (298 + 198 + 3*48 - 2*495)/500 = -70 cents<BR>\n" );
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document.write( "Steven can expect to lose 70 cents<BR>\n" );
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document.write( "b) Find the fair price of the ticket.<BR>\n" );
document.write( "He should pay (2-0.70) = $1.30 to play the game.<BR>\n" );
document.write( "Then his expected winnings would be zero and his expected loss would be zero.<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. \r<BR>\n" );
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