Question 1199875
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900 tickets are sold at $6 each; the total income for the student council is $5400.<br>
The total value of the prizes is $3000 + 3($200) + 13($40) = $4120.<br>
The average income per ticket is ($5400-$4120)/900 = $1.42 rounded to the nearest cent.<br>
The average income per ticket for the council is the average loss (expected value) per ticket for the ticket buyers.<br>
ANSWER: The expected value is a loss of $1.42<br>
Using the formal definition of expected value....<br>
{{{((1/900)(3000-6)+(3/900)(200-6)+(13/900)(40-6))}}} = -1.42 to 2 decimal places.<br>