Question 321048: The college Student senate is sponsoring a spring break Carribbean cruise raffle. The proceeds are to be donated to then samaritan Center for the homeless. A local travel agency donated the cruise, valued at $2,000. The students sold 2852 raffle tickets at $5 per ticket. Kevin bought six tickets. What is kevins expected value for the raffle? How much did kevin effectivly contribute to the samaritan center for the homeless?
Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! The college Student senate is sponsoring a spring break Carribbean cruise raffle. The proceeds are to be donated to the samaritan Center for the homeless.
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A local travel agency donated the cruise, valued at $2,000.
The students sold 2852 raffle tickets at $5 per ticket.
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Kevin bought six tickets. What is kevins expected value for the raffle? How much did kevin effectivly contribute to the samaritan center for the homeless?
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Let X be "Kevin's gain":
Random number values: -30 , 1970
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Corresponding Probabilities: 2846/2852, 6/2852
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E(X) = (1/2852)(-30*2846 + 6*1970) = -$25.79
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He can expect to contribute $25.79 to the center.
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Cheers,
Stan H
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