document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1186121>Question 1186121</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Tickets for a raffle cost $12. There were 713 tickets sold. One ticket will be randomly selected as the winner, and that person wins $1800 and also the person is given back the cost of the ticket. For someone who buys a ticket, what is the Expected Value (the mean of the distribution)? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #849494 by </B><A HREF=/tutors/aboutme.mpl?userid=greenestamps><B>greenestamps(13200)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=greenestamps><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=greenestamps><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=849494\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <br><BR>\n" );
document.write( "Tutor @ikleyn solves the problem using the formal definition of expected value; that is probably what the student was expected to do.<br><BR>\n" );
document.write( "For simple problems like this, the expected value can be determined less formally with less work.<br><BR>\n" );
document.write( "The total cost of the 713 tickets sold was 713($12) = $8556.<br><BR>\n" );
document.write( "The total payout was $1800+$12 = $1812 (the person who won the prize also got back the cost of his ticket).<br><BR>\n" );
document.write( "The net loss to the players was $8556-1812 = $6744.<br><BR>\n" );
document.write( "The average loss for the 713 tickets sold was $6744/713 = $9.4586.... or about $9.46<br><BR>\n" );
document.write( "ANSWER: The expected value for each ticket sold was -$9.46<br><BR>\n" );
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