document.write( "Question 1175195: You are asked to buy a ‘lucky draw’ ticket with the price of RM2. You can win RM5000 as first prize,
\n" ); document.write( "RM1000 as second prize or RM500 as third prize with probabilities of 0.0001, 0.0005 and 0.0015 respectively.
\n" ); document.write( "Basing your decision on the expected value, should you buy the ticket? Why? \n" ); document.write( "

Algebra.Com's Answer #800782 by ewatrrr(24785) $\"\"$ $\"About$

You can put this solution on YOUR website!

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document.write( "Hi\r\n" );
document.write( "Finding the 'Expected Value' of the RM 2 Investment:\r\n" );
document.write( " 5000(.0001) + 1000(.0005) + 500(.00015) = .5 + .5 + .75 = \r\n" );
document.write( "Ticket casts RM2:  Buy a ticket ?  \r\n" );
document.write( "NO, As  RM 1.75 < RM 2\r\n" );
document.write( "Wish You the Best in your Studies.\r\n" );
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