SOLUTION: A charity holds a raffle in which each ticket is sold for $40. A total of 8200 tickets are sold. They raffle one grand prize which is a Mercedes Benz E350 valued at $60000 along wi

Algebra ->  Probability-and-statistics -> SOLUTION: A charity holds a raffle in which each ticket is sold for $40. A total of 8200 tickets are sold. They raffle one grand prize which is a Mercedes Benz E350 valued at $60000 along wi      Log On


   

Question 1099295: A charity holds a raffle in which each ticket is sold for $40. A total of 8200 tickets are sold. They raffle one grand prize which is a Mercedes Benz E350 valued at $60000 along with 6 second prizes of Ducati motorcycles valued at $11000 each. What are the expected winnings for a single ticket buyer? Express to at least three decimal place accuracy in dollar form (as opposed to cents).
Answer: $

Answer by jorel1380(3719) About Me  (Show Source):
You can put this solution on YOUR website!
The total value of the prizes is 60,000 +6(11,000), or 126,000. The payout per ticket is 126,000/8,200=$15.366. Since each ticket cost $40, the expected return, per ticket is 15.366-40, or -$24.634
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