anonymous
  • anonymous
1. A group holds a raffle to raise money. They sell 100 raffle tickets for $5 each. There is one grand prize worth $100, three second place prizes worth $25 each and five 3rd place prizes worth $10 each. Find the expected value associated with the purchase of one ticket. (Remember to subtract the cost of playing from your winnings)
Mathematics
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
schrodinger
  • schrodinger
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
anyone can help me?
anonymous
  • anonymous
HELP ME PLZZZ
Valpey
  • Valpey
Okay, how much do they collect in ticket sales, and how much in total do they pay out in prizes?

Looking for something else?

Not the answer you are looking for? Search for more explanations.

More answers

anonymous
  • anonymous
500 AND 225?
Valpey
  • Valpey
Yes, they collect $500 in ticket sales but they must pay out prizes of $100 plus 3*$25 = $75 plus 5*$10=$50 or $225 in total prizes.
Valpey
  • Valpey
So the gross expected value of a ticket is the total prize pool divided by the number of tickets. The net expected value (what the question is asking) is that amount minus the cost of buying a ticket.
anonymous
  • anonymous
so the answer is 2.25?
Valpey
  • Valpey
The people buying the tickets aren't expecting to profit (unless they have unrealistic expectations about luck or something). They are choosing a fun way of donating money to the Group. They are expecting to lose money, or we can say the expected value of a ticket is negative. The raffle is a fund raiser and the person purchasing the ticket can think of $2.75 going toward the Group and the $2.25 going toward the prize pool.
Valpey
  • Valpey
But in terms of the answer to the question, it is the amount that a person buying a ticket expects to lose, so $2.25 - $5.00.
anonymous
  • anonymous
Oh... I still confused about it... Do I need to use the probability to calculate it? Such as I have \[\frac{ 1 }{ 100 }\] chance to get $100?
Valpey
  • Valpey
You could do it that way for each prize, but it will end up the same.
Valpey
  • Valpey
You will see that \(\frac{1}{100}*$100+\frac{3}{100}*$25+\frac{5}{100}*$10=$2.25\)
anonymous
  • anonymous
I gotcha! Thank you so much!

Looking for something else?

Not the answer you are looking for? Search for more explanations.