SOLUTION: A community 5K run will award $50 to the winner. 40 people enter the race, and they each pay an entry fee of $20. Assuming they are all equally likely to win, what is a fair price

Algebra ->  Probability-and-statistics -> SOLUTION: A community 5K run will award $50 to the winner. 40 people enter the race, and they each pay an entry fee of $20. Assuming they are all equally likely to win, what is a fair price       Log On


   

Question 489136: A community 5K run will award $50 to the winner. 40 people enter the race, and they each pay an entry fee of $20. Assuming they are all equally likely to win, what is a fair price for the competition? Round to the nearest cent.
Answer by jorel1380(3719) About Me  (Show Source):
You can put this solution on YOUR website!
$50/40=$1.25
Since they are all equally likely to win, the expected payout is $1.25, which is the fair price they should each be expected to pay..