document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=420418>Question 420418</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Hello, I have a question that I could use some assistance on.\r<BR>\n" );
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document.write( "Raffle tickets. 1,000 raffle tickets are sold for $1.00 each. One prize of $800.00 is to be awarded.\r<BR>\n" );
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document.write( "a) Reng Condos purchases one ticket. Determine her expected value.\r<BR>\n" );
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document.write( "b) Determine the fair price of a ticket.\r<BR>\n" );
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document.write( "Thank you so much for your help!!! </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #293798 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=293798\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Raffle tickets. 1,000 raffle tickets are sold for $1.00 each. <BR>\n" );
document.write( "One prize of $800.00 is to be awarded. <BR>\n" );
document.write( "a) Reng Condos purchases one ticket. Determine her expected value. <BR>\n" );
document.write( "Random gain values: 799, -1<BR>\n" );
document.write( "Corresponding Probs: 1/1000, 999/1000<BR>\n" );
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document.write( "E(x) = (1/1000)799 -1(999/1000) = (799-999)/1000 = -200/1000 = -20 cents<BR>\n" );
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document.write( "b) Determine the fair price of a ticket.<BR>\n" );
document.write( "Let the cost to play be \"x\".<BR>\n" );
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document.write( "Random gain values: 800-x and -x<BR>\n" );
document.write( "Corresponding Probs 1/1000 , 999/1000<BR>\n" );
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document.write( "Note: A fair price means E(x) = 0<BR>\n" );
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document.write( "Solve:<BR>\n" );
document.write( "(800-x)/1000-999x/(1000) = 0<BR>\n" );
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document.write( "800-x-999x = 0<BR>\n" );
document.write( "800-1000x = 0<BR>\n" );
document.write( "x = 8/10 = $0.8 = 80 cents<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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