document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1170625>Question 1170625</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A charity raffle told people that they should expect to win at least $4 for every ticket they purchase. There were two $50 gift certificates, seven $20 gift certificates, and eleven $15 gift certificates. If there were 150 tickets sold and each ticket sold for $10, were they honest with their customers? If not, how could you make their claim true? Explain/justify your answer.\r<BR>\n" );
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document.write( "(can you provide the equation I should use to solve this and explain why because I am struggling to understand what probability equation should be used. Thank you.) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #795484 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=795484\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Amount raised $1500 (150*$10)<BR>\n" );
document.write( "150 tickets, so at $4/ticket expected value, this should mean $600 in prizes.<BR>\n" );
document.write( "2-$50=$100<BR>\n" );
document.write( "7-$20=$140<BR>\n" );
document.write( "11-$15=$165<BR>\n" );
document.write( "That is $405, and about $3.70 per ticket<BR>\n" );
document.write( "expected value is $50(2/150)+$20(7/150)+$15(11/150)=<BR>\n" );
document.write( "$100/150 or $0.67<BR>\n" );
document.write( "$140/150 or $0.93<BR>\n" );
document.write( "$165/150 or $1.10<BR>\n" );
document.write( "that is $2.70<BR>\n" );
document.write( "minus $10.00 paid and that means the expected value of a $10 ticket is -$7.30\r<BR>\n" );
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document.write( "This is not honest. They could try the truth: here is how much the prizes are worth, and here is how many tickets are being sold. If you bought every ticket, you would lose $1095, which is what is going to the charity. It's a charity raffle.  \r<BR>\n" );
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document.write( "The other issue is that winning $4 for each ticket makes people think they are getting back the original price of the ticket, which they are not. To win $4 per ticket, which isn't really right, means you first have to pay $10 for that privilege. </SPAN>\n" );
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