document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1150251>Question 1150251</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The student council is hosting a drawing to raise money for scholarships. They are selling tickets for $7 each and will sell 500 tickets. There is one $1,000 grand prize, two $200 second prizes, and fourteen $10 third prizes. You just bought a ticket. Find the expected value for your profit. Round to the nearest cent. </SPAN>\n" );
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document.write( "You have received three responses, all showing how to find the expected value based on the formal definition of expected value.<br><BR>\n" );
document.write( "For many basic expected value problems like this, there is an easier way to find the expected value.<br><BR>\n" );
document.write( "To the people buying the tickets, the total cost is 500 times $7, or $3500.<br><BR>\n" );
document.write( "The total value of the prizes is $1000, plus 2 times $200, plus 14 times $10, for a total of $1540.<br><BR>\n" );
document.write( "The expected value for each ticket is the difference between the total payout and the total cost, divided by the number of tickets:<br><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%281540-3500%29%2F500+=+-1960%2F500+=+-3.92 ALIGN=MIDDLE  ALT=\"%281540-3500%29%2F500+=+-1960%2F500+=+-3.92\"   DISABLED_style= \"max-width:90%; height:auto;\" ><br><BR>\n" );
document.write( "ANSWER: The expected profit from each ticket is -$3.92.<br>\r<BR>\n" );
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document.write( " </SPAN>\n" );
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