Ten thousand raffle tickets are sold. one first prize of$2000,4 second prizes of $800 each, and10 third prizes of$400 each are to be awarded, with all winners selected randomly. if you are given one ticket, what are your expected winnings?

Question

Mathematics

Ellis Hays

23 September, 01:21

Ten thousand raffle tickets are sold. one first prize of$2000,4 second prizes of $800 each, and10 third prizes of$400 each are to be awarded, with all winners selected randomly. if you are given one ticket, what are your expected winnings?

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Answers (1)

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Craig Nichols · Answer 1

From the information given:

Random wins 2000 800 400 0

Probabilities 1/10^4 4/10^4 10/10^4 9985/10^4

thus the expectation will be:

E (x) = [2000+4*800+4000+9985*0]/10^4

E (x) = 9200/10000

E (x) = $0.92