Question 1052705: Tickets for a raffle cost$14. There were 834 tickets sold. One ticket will be randomly selected as the winner, and that person wins $1200 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)?
If the Expected Value is negative, be sure to include the "-" sign with the answer. Express the answer rounded to two decimal places
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Tickets for a raffle cost $14. There were 834 tickets sold. One ticket will be randomly selected as the winner, and that person wins $1200 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)?
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Random "winning" value::.....1214....... -14
Probabilities:::::............1/834.... 833/834
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Expected Value = (1*1214 -14*833)/834 = -$12.53
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Cheers,
Stan H.
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