SOLUTION: 1000 tickets are sold for a charity lottery at $5 each. Three numbers are drawn at random to receive 1st 2nd and 3rd place prizes of $2000, $1000, and $500 respectively. what is th
Algebra ->
Probability-and-statistics
-> SOLUTION: 1000 tickets are sold for a charity lottery at $5 each. Three numbers are drawn at random to receive 1st 2nd and 3rd place prizes of $2000, $1000, and $500 respectively. what is th
Log On
Question 927776: 1000 tickets are sold for a charity lottery at $5 each. Three numbers are drawn at random to receive 1st 2nd and 3rd place prizes of $2000, $1000, and $500 respectively. what is the mean (expectation) from such a drawing? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! 1000 tickets are sold for a charity lottery at $5 each. Three numbers are drawn at random to receive 1st 2nd and 3rd place prizes of $2000, $1000, and $500 respectively. what is the mean (expectation) from such a drawing?
---------
Random winnings::.......1995.....995....495....-5....
Probabilities............1/1000..1/1000..1/1000..997/1000
------------------
E(x) = (1995 + 995 + 495 - 5*997)/1000 = -1500/1000 = -$1.50
----------------
Cheers,
Stan H.
----------------
(