Question 238892: A raffle offers (1) first prize of $1000, (2) second prizes of $300 and (20) third prizes of $10. 15,000 tickets were sold for 25 cents each. Find the expected winnings for a person buying 1 ticket.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A raffle offers (1) first prize of $1000, (2) second prizes of $300 and (20) third prizes of $10. 15,000 tickets were sold for 25 cents each. Find the expected winnings for a person buying 1 ticket.
---------------------------------------------------
Random number values are 1000, 300 (twice) , 10 (20 times). (-0.25)
Corresponding probabilities are (1/15000), (2/15000), (20/15,000), (14977/15000)
--------------
Expected winnings: [1000 + 600 + 200 -(14977*0.25)]/15000
= (1800 - 3744.25)/15000 = -0.13 cents
---
Expected winnings are -13 cents
======================================
Cheers,
Stan H.
|
|
|
