document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=126791>Question 126791</A>: <I><SPAN STYLE=\"word-break: break-all;\"> PlEASE help!\r<BR>\n" );
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document.write( "Raffle tickets.<BR>\n" );
document.write( "One thousand raffle tickets are sold for $1 each.  One prize of $800 is to be awarded.<BR>\n" );
document.write( "a) Rena Condos purchases one ticket.  Find her expected value.<BR>\n" );
document.write( "b)  Determine the fair price of a ticket. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #92888 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=92888\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> One thousand raffle tickets are sold for $1 each. One prize of $800 is to be awarded.<BR>\n" );
document.write( "a) Rena Condos purchases one ticket. Find her expected value.<BR>\n" );
document.write( "The random variable has the values +800 and -1<BR>\n" );
document.write( "The corresponding probabilities are 1/1000 and 999/1000<BR>\n" );
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document.write( "Multiply each value by its probability and add the results to get:<BR>\n" );
document.write( "E(x) = 800(1/1000) + (-1)(999/1000) <BR>\n" );
document.write( "E(x) = 0.8 - 0.999<BR>\n" );
document.write( "E(x) = -0.199 or a loss of 19.9 cents<BR>\n" );
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document.write( "b) Determine the fair price of a ticket.<BR>\n" );
document.write( "Let the price be \"x\".<BR>\n" );
document.write( "The random variable values are 800 and -x<BR>\n" );
document.write( "The probabilities are 1/1000 and 999/1000<BR>\n" );
document.write( "Multiplying and add you get:<BR>\n" );
document.write( "800(1/1000)+x(999/1000) = 0<BR>\n" );
document.write( "800 + 999x = 0<BR>\n" );
document.write( "x = -(800/999) dollars<BR>\n" );
document.write( "x = -0.80 dollars<BR>\n" );
document.write( "The price to play should be 80 cents.<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.\r<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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