document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=578142>Question 578142</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 500 hundred raffle tickets were sold for $2 each. A prize of $400 is to be awarded. If you buy 1 ticket,determine the expected value. What is the fair price for a ticket. \r<BR>\n" );
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document.write( "with replacement<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 #370515 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=370515\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 500 hundred raffle tickets were sold for $2 each. A prize of $400 is to be awarded. If you buy 1 ticket,determine the expected value. What is the fair price for a ticket.<BR>\n" );
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document.write( "Random variable values: -2     ;  398<BR>\n" );
document.write( "Probabilities::::::::::499/500 ; 1/500 <BR>\n" );
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document.write( "Expected Value: E(x) = (499/500)(-2) + (1/500)398<BR>\n" );
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document.write( "= (-998+398)/500 = -600/500 = -6/5 = -$1.20<BR>\n" );
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document.write( "with replacement<BR>\n" );
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document.write( "Comment: With or without replacement has no relevance<BR>\n" );
document.write( "as there is only one drawing.<BR>\n" );
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document.write( "A fair ticket price would be $2-1.20 = 80 cents<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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