You pay $1 for one of 1000 tickets at a church fair. Four numbers are drawn. The

ID: 3051904 • Letter: Y

Question

You pay $1 for one of 1000 tickets at a church fair.
Four numbers are drawn.
The holder of the first # drawn will win $500
The holders of the remaining three numbers will each receive $100.
What are your expected winnings? You pay $1 for one of 1000 tickets at a church fair.
Four numbers are drawn.
The holder of the first # drawn will win $500
The holders of the remaining three numbers will each receive $100.
What are your expected winnings?
Four numbers are drawn.
The holder of the first # drawn will win $500
The holders of the remaining three numbers will each receive $100.
What are your expected winnings?
The holder of the first # drawn will win $500
The holders of the remaining three numbers will each receive $100.
What are your expected winnings?
The holder of the first # drawn will win $500
The holders of the remaining three numbers will each receive $100.
What are your expected winnings?

Explanation / Answer

here probability of winning $500 =1/1000

and winning $100 =3/1000

therefore expected winnings =500*(1/1000)+100*(3/1000)=$ 0.8

and expected value of game=expected win -cost =$0.8-$1 =$ -0.2

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You pay $1 for one of 1000 tickets at a church fair. Four numbers are drawn. The

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