document.write( "Question 445456: One thousand raffle tickets are sold for $5.00 each. One grand prize of $1000 and two consolation prizes of $200 each will be awarded. Jeremy purchases one ticket. Find his expected value. Show your work for full credit. \n" ); document.write( "

Algebra.Com's Answer #306834 by Edwin McCravy(20056) $\"\"$ $\"About$

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One thousand raffle tickets are sold for $5.00 each. One grand
\n" ); document.write( "prize of $1000 and two consolation prizes of $200 each will be
\n" ); document.write( "awarded. Jeremy purchases one ticket. Find his expected value.
\n" ); document.write( "Show your work for full credit.
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document.write( "[The other tutor forgot to subtract the price of the ticket from the\r\n" );
document.write( "winnings, so her answer was a penny short of the expected loss of\r\n" );
document.write( "$3.60.]\r\n" );
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document.write( "    Event                  x = winning   P(x)        xP(x)\r\n" );
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document.write( "wins grand prize              $995       1/1000    995/1000\r\n" );
document.write( "wins a consolation prize      $195       2/1000    390/1000\r\n" );
document.write( "doesn't win                   -$5      997/1000  -4985/1000\r\n" );
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document.write( "                                 E(x) = ΣxP(x) = -3600/1000 = -$3.60\r\n" );
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document.write( "If a raffle exactly like this one were held many times, and Jeremy bought \r\n" );
document.write( "one ticket every time, then he would expect to average having lost $3.60 \r\n" );
document.write( "per time he entered.\r\n" );
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document.write( "Edwin

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