document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=204955>Question 204955</A>: <I><SPAN STYLE=\"word-break: break-all;\"> I am having trouble with this: <BR>\n" );
document.write( "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 fo 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( "So far, for a, I think you would do something like this: \r<BR>\n" );
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document.write( "1st prize: 1/500 = 0.002<BR>\n" );
document.write( "2nd prize: 1/500 = 0.002<BR>\n" );
document.write( "3rd prize: 3/500 = 0.006\r<BR>\n" );
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document.write( "so, $300(0.002) + $200(0.002) + $50(0.006) = $1.30\r<BR>\n" );
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document.write( "For b, I do not know where to begin. <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 #154717 by </B><A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><B>jim_thompson5910(35256)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><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=154717\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> a) Good job so far, but you're forgetting to subtract the price to play the game. You need to subtract $2 from $1.30 to get: 1.3-2=-0.7\r<BR>\n" );
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document.write( "So you lose $0.70 (70 cents) on average each time you play. \r<BR>\n" );
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document.write( "b) In order for it to be a fair game, the price to play must be equal to the amount of money you lose. This way, their difference will be zero. Note: a 'fair game' is where you neither win money or lose money (ie you break even). So the fair price is $1.30 since (expected gain - price to play = 1.30 - 1.30 = 0) </SPAN>\n" );
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