document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=445837>Question 445837</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Please help.  I cannot figure this out and the examples in my text book does not help at all.  Thank you in advance.\r<BR>\n" );
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document.write( "Ten thousand raffle tickets are sold for $5 each. Four prizes will be awarded: one for $5000, one for $2500, and two for $1000. Assume that the probability that any given ticket is selected for the $5000 prize is 1:10000 the probability that any given ticket is selected for the $2500 prize is 1:10000 and the probability that any given ticket is selected for a $1000 prize is 2:10000.\r<BR>\n" );
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document.write( "a)	Determine his 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( "Please show work. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #307013 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=307013\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Ten thousand raffle tickets are sold for $5 each. Four prizes will be awarded: one for $5000, one for $2500, and two for $1000. Assume that the probability that any given ticket is selected for the $5000 prize is 1:10000 the probability that any given ticket is selected for the $2500 prize is 1:10000 and the probability that any given ticket is selected for a $1000 prize is 2:10000. <BR>\n" );
document.write( "a) Determine his expected value.<BR>\n" );
document.write( "E(x) = [4995 + 2495 + 2*2(995)+ 9996(-5)]/10000 = $5.40<BR>\n" );
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document.write( "b) Determine the fair price of a ticket.<BR>\n" );
document.write( "If each tick cost $10.40 the game would be \"fair\".<BR>\n" );
document.write( "That means the players expected gain would be zero<BR>\n" );
document.write( "and his expected loss would be zero.<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. <BR>\n" );
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