document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=810647>Question 810647</A>: <I><SPAN STYLE=\"word-break: break-all;\"> six hundred chances are sold at $3 a piece for a raffle there is a grand prize of $400 two second prizes for $350 and five third prizes for $50 first calculate the expected value of the game determine if the game is fair if the game is not fair determine a price for playing the game that would make it fair<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 #488308 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=488308\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> six hundred chances are sold at $3 a piece for a raffle <BR>\n" );
document.write( "there is a grand prize of $400 two second prizes for $350 and five third prizes for $50 first calculate the expected value of the game determine if the game is fair if the game is not fair determine a price for playing the game that would make it fair<BR>\n" );
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document.write( "Random \"winning\" values:: 397....347.....47...... -3<BR>\n" );
document.write( "Probabilities::...........1/600..2/600...5/600....592/600<BR>\n" );
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document.write( "Expected value = [397 + 2*347 + 5*47 - 3*592]/600 = -75 cents<BR>\n" );
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document.write( "Not fair to the player as he can expect to lose 75 cents for each ticket bought.<BR>\n" );
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document.write( "Fair price 3.00 - 0.75 = $2.25<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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