Question 816288
A local travel agency donated the cruise, valued at 2000.00. The students sold 2852 raffle tickets at $5 per ticket. Kevin bought 1 ticket. 
1.What is the probability that Kevin will win the spring break cruise? 
P(win) = 1/2852
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2.What is the probability that Kevin will not win the cruise?
P(not win) = 2851/2852
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3. What is Kevin's expectation if he buys one ticket?
E(x) = (1/2852)(1995) + (2851/2852)(-5) = -$4.30
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4. Interpret what the value calculated in no. 3 means about Kevin's expectation in participating in the raffle.
He can expect to lose $4.30 on each ticket he purcases.
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5. How does the value calculated in no. 3 compare to the amount Kevin paid for the ticket?
Obvious
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Explain why the value in no. 3 is not exactly what Kevin paid for the ticket.
Because he has a slight chance of winning and a large chance of losing.
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Cheers,
Stan