Question 952636: a raffle offers a first prize of $1000, 2 second prizes of $300, and 20 third prizes of $10 each. If 8000 tickets are sold at 50 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 a first prize of $1000, 2 second prizes of $300, and 20 third prizes of $10 each. If 8000 tickets are sold at 50 cents each, find the expected winnings for a person buying 1 ticket.
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Random "winnings":: 999.5....299.5.....9.50....-0.5
Corresponding probs: 1/8000.. 2/8000..20/8000..7977/8000
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E(winnings) = (1*999.5 + 2*299.5 + 20*9.5 - 7977*0.5)/8000
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E(winnings) = -27.5 cents
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Cheers,
Stan H.
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