Answer:
The expected value of raffles will be - $1.199.
Explanation:
A raffle is being held at a benefit concert.
The prizes awarded are: 1 grand prize of $8,900.00, 3 prizes of $680.00, 8 prize of $95.00, and 15 prizes of $25.00.
15000 raffle tickets are sold. A person buys one ticket for $2.
Expected Value of raffle for that person
=[tex][ \$8,900\ \times\ (1/15000)\ +\ \$680\ \times\ (3/15000)\ +\ \$95\ \times\ (8/15000)\ +\ \$25\ \times\ (15/15000)]\ -\ \$2[/tex]
= $(0.59 + 0.136 + 0.050 + 0.025) - $2
= $0.801 - $2
= - $1.199
Answer:
The expected value of the ticket bought in the raffle draw will be $8.04
Explanation:
The total raffle sold is 15000 at $2 per ticket
The total value of the 15000 tickets will be = $2 * 1500 = $3000
what percentage is $2 in $3000
= 2/3000 * 100
= 0.0006 * 100 = 0.0666%
The total price money to be won will be
1 grand prize = $8900
3 prizes = 3 * $680 = $2040
8 prizes = 8 * $95 = $760
15 prizes = 15 * $25 = $375
total prize money = 8900 + 2040 + 760 + 375 = $12075
therefore the value of the one ticket bought will be
0.0666% of $12075 = $8.04
