SOLUTION: 500 raffle tickets are sold at $2 each. One grand prize of $100 and two consolation prizes of $50 will be awarded. Find Jake’s expectation (expected value) if he purchases one tick

Algebra ->  Probability-and-statistics -> SOLUTION: 500 raffle tickets are sold at $2 each. One grand prize of $100 and two consolation prizes of $50 will be awarded. Find Jake’s expectation (expected value) if he purchases one tick      Log On


   

Question 187207This question is from textbook Survey of Mathematics w/ Applications expanded edition
: 500 raffle tickets are sold at $2 each. One grand prize of $100 and two consolation prizes of $50 will be awarded. Find Jake’s expectation (expected value) if he purchases one ticket. This question is from textbook Survey of Mathematics w/ Applications expanded edition

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
500 raffle tickets are sold at $2 each. One grand prize of $100 and two consolation prizes of $50 will be awarded. Find Jake’s expectation (expected value) if he purchases one ticket.
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Random Number Values:........ -2......., 100...., 50....., 50
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Corresponding Probabilities.. (497/500), (1/500), (1/500), (1/500)
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Expected winnings = (497/500)(-2) + (1/500)(100 + 50 + 50)
= -0.795 dollars = lose 80 cents
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Cheers,
Stan H.