1 -The jump rope club is selling raffle tickets. hey plan to sell 500 tickets fo

Question

1 -The jump rope club is selling raffle tickets. hey plan to sell 500 tickets for $5 each. There

will be one $500 prize, one $100 prize and three $50 prizes. What is the expected value for

the club for each ticket?  

2-Will and Margaret had $98,701 in income from their jobs, they received $28 in interest

from a savings account, and Margaret earned $400 from a textbook publisher. They had

$3300 withheld and deposited into a tax-deferred retirement account. They are entitled to $12,000 in exemptions for the family and their itemized deductions totaled $21,833. Find the gross income, adjusted gross income, and the taxable income.

Explanation / Answer

1) Outcome                   Probability Prize Amount Expected Value = Prob. x Prize Amt 1 Prize $500 1/500 0.20% $500.00 $1.00 1 prize $100 1/500 0.20% $100.00 $0.20 3 prize $50 3/500 0.60% $50.00 $0.30 0 Prize 495/500 99.00% $0.00 $0.00 100.00% $1.50 The expected value of each raffle ticket is $1.50

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