22 January, 00:34

# A raffle is being held at a benefit concert. The prizes are awarded as follows: 1 grand prize of \$6,200.00, 3 prizes of \$940.00, 8 prize of \$98.00, and 10 prizes of \$25.00. Suppose 17000 raffle tickets are sold, if you buy one ticket for \$1.00 then what is your expected value for this raffle?

+2
1. 22 January, 01:55
0
Expected Value = - \$0.41

Step-by-step explanation:

Expected Value = [\$6,200 * (1/17000) + \$940 * (3/17000) + \$98 * (8/17000) + \$25 * (10/17000) ] - 1

Expected Value = [0.59]-1

Expected Value = - \$0.41
2. 22 January, 04:15
0
Expected value = \$-0.41

Step-by-step explanation:

1 grand prize = \$6,200

3 prizes = \$940

8 prize = \$98

10 prizes = \$25

Total raffle tickets = 17000

The value of each ticket is

\$6,200 * (1/17000) + \$940 * (3/17000) + \$98 * (8/17000 + \$25 * (10/17000)

\$0.364 + \$0.1658 + \$0.0461 + \$0.0147

\$0.59

The expected value is

E = \$0.59 - \$1

E = \$-0.41

That means you are most likely to lose \$0.41 if you buy a raffle ticket for \$1.