SOLUTION: The student council is hosting a drawing to raise money for scholarships. They are selling tickets for $7 and will sell 900 tickets. There is one $2,000 grand prize, three $400 sec

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Question 1154068: The student council is hosting a drawing to raise money for scholarships. They are selling tickets for $7 and will sell 900 tickets. There is one $2,000 grand prize, three $400 second prizes, and seventeen $40 third prizes. You just bought a ticket. Find the expected value for your profit. Round to the nearest cent.

Answer by ikleyn(52817) About Me  (Show Source):
You can put this solution on YOUR website!
.

Expected value for your profit is  


    2000%2F900+%2B+%283%2A400%29%2F900+%2B+%2817%2A40%29%2F900 - 7 = %282000%2B3%2A400%2B17%2A40%29%2F900 - 7 = 4.31 - 7 = -2.69  dollars.


So, you expect to lose  $2.69.

Solved.