document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=408575>Question 408575</A>: <I><SPAN STYLE=\"word-break: break-all;\"> One thousand raffle tickets are sold for $1.00 each. One grand prize of $400 and two consolation prizes of $100 each will be awarded. Jeremy purchases one ticket. Find his expected value. Show your work for full credit.<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 #287879 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=287879\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> One thousand raffle tickets are sold for $1.00 each. One grand prize of $400 and two consolation prizes of $100 each will be awarded. Jeremy purchases one ticket. Find his expected value. <BR>\n" );
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document.write( "Let x be Jeremy's gain<BR>\n" );
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document.write( "Random gain values are: 399.......99........99.......-1<BR>\n" );
document.write( "Matching probabilities: 1/10^3..1/10^3....1/10^3....997/1000<BR>\n" );
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document.write( "Expected gain = (399 + 99 + 99 - 997)/1000 = -400/1000 = -40 cents.<BR>\n" );
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document.write( "He can expect to lose 40 cents on his purchase.<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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