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anonymous

  • one year ago

Please Help Suppose you purchase a raffle ticket for $1.00. First prize is $5,000, second prize is $1,000, and third prize is $500. If 500 tickets are sold, what should you expect to win or lose? Round the answer to the nearest cent. $0.99 loss $13.00 loss $10.00 gain $12.00 gain

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  1. unknownunknown
    • one year ago
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    So, let's model this shall we? First of all, how much is the total prize pool? Can you work that out for me?

  2. anonymous
    • one year ago
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    They are giving out $6,500 in prize money and $500 worth of tickets are sold??

  3. unknownunknown
    • one year ago
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    That's right, but more importantly, we have 500 competitors.

  4. unknownunknown
    • one year ago
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    Now of course, the correct answer is $0, since we don't expect to win anything from this single raffle draw. However, what I believe the question is asking.. "if we played the raffle an infinite number of times, how much would we win.. on average.. each time?". That's a much better way the question should be worded. So, to answer that. We must distribute $6500 among 500 competitors. So how much would each competitor win on average if they played the game an infinite number of time? (hint: $6500/500)

  5. anonymous
    • one year ago
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    $13

  6. unknownunknown
    • one year ago
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    That's right. Now. what was our investment (or cost) to play each time?

  7. anonymous
    • one year ago
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    so the answer is B.?

  8. unknownunknown
    • one year ago
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    Nope, answer my question first.

  9. unknownunknown
    • one year ago
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    Each time we play, we win $13 on average. But we have to pay to play. How much do we pay to play?

  10. anonymous
    • one year ago
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    it cost $1 to play each time

  11. unknownunknown
    • one year ago
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    Great. So if we pay $1 to win $13, what is our total profit each time?

  12. anonymous
    • one year ago
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    $12

  13. unknownunknown
    • one year ago
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    Excellent!

  14. anonymous
    • one year ago
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    Thank you!!!

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