document.write( "Question 1086150: The Organic Mattress Company, makers of the Savvy and Reverie type mattress, is conducting a raffle. The proceeds will go to the Sleep Apnea Foundation. The cost of a ticket is $ 20 ( tax deductible). The prizes are as follows: One (PRIZE )deluxe mattress set valued at $ 4,999; two (PRIZES) standard mattress sets valued at 2,499 EACH and a budget set valued at $ 1,555. There are 4 prizes ! NUMBER OF TICKETS SOLD IS 1000. find the expected value of this raffle. \n" ); document.write( "
Algebra.Com's Answer #700314 by htmentor(1343)\"\" \"About 
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The expected value is E(X) = \"SIGMA\"Xi*Pi, where Xi is the value of the i-th outcome and Pi is the probability of the i-th outcome.
\n" ); document.write( "There are 4 possible outcomes:
\n" ); document.write( "1. You win the deluxe set valued at $4999
\n" ); document.write( "2. You win the standard set valued at $2499
\n" ); document.write( "3. You win the budget set valued at $1555
\n" ); document.write( "4. You lose $20 (cost of the ticket)
\n" ); document.write( "For each of the prizes, we have to deduct the cost of the ticket from the value
\n" ); document.write( "The probability for the 4 outcomes is:
\n" ); document.write( "1. P(deluxe) = 1/1000 [1 prize]
\n" ); document.write( "2. P(standard) = 2/1000 [2 prizes]
\n" ); document.write( "3. P(budget) = 1/1000 [1 prize]
\n" ); document.write( "4. P(lose) = 996/1000
\n" ); document.write( "Therefore E(X) = (1/1000)*$4979 + (2/1000)*$2479 + (1/1000)*$1535 + (996/1000)*$20 = -$8.45
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