Question 468990: a rotary club is holding a charity fundraise to bolster its college scholarship fund. The club is selling 2000 raffle tickets for $10 each. to keep the problem simple, assume a ticket can win more than on prize. the prizes are as follows
1-first prize valued at $5000
4-second prizes valued at $500
10-third prizes valed at $100
compute the expected vlue for a player purchsing a single ticket
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! a rotary club is holding a charity fundraise to bolster its college scholarship fund. The club is selling 2000 raffle tickets for $10 each. to keep the problem simple, assume a ticket can win more than on prize. the prizes are as follows
1-first prize valued at $5000
4-second prizes valued at $500
10-third prizes valed at $100
compute the expected vlue for a player purchsing a single ticket
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Random "gain" values: 4990,490,90,-10
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Corresponding probabiities: 1/2000 on each drawing for prizes.
Expected "gain" = (1/2000)(4990+490+90)-(1997/2000)(10)
= (5570-19970)/2000
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= -$7.20
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Cheers,
Stan H.
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