A raffle offers a first prize of $1000, 2 second prizes of $300, and 20 third pr

Question

A raffle offers a first prize of $1000, 2 second prizes of $300, and 20 third prizes of 10$ each. If 20000 tickets are sold at 25 cents each, find the expected winnings for a person buying 1 ticket. What are the expected winnings ?? (In cents ROUND THE ANSWER. TO THE NEAREST WHOLE CENT) A raffle offers a first prize of $1000, 2 second prizes of $300, and 20 third prizes of 10$ each. If 20000 tickets are sold at 25 cents each, find the expected winnings for a person buying 1 ticket. What are the expected winnings ?? (In cents ROUND THE ANSWER. TO THE NEAREST WHOLE CENT)

Explanation / Answer

Let X is a radnom variable shows the winning. Here X can take value $1000-$0.25=$999.75, $300-$0.25 = $299.75, $10-$0.25 = $9.75 and -$0.25. Since out of 20000 tickets only 1 has first prize so

P(X = $999.75) = 1/20000 = 0.00005

Since out of 20000 tickets only 2 has second prizes so

P(X = $299.75) = 2/20000 = 0.0001

Since out of 20000 tickets 20 has third prizes so

P(X = $9.75) = 20/20000 = 0.001

and 20000 -(1+2+20) = 19977 tickets do not have any prize so

P(X = -$0.25) = 19977 / 20000 = 0.99885

The expected winning for the person buying 1 ticket is

E(X) =  $999.75* 0.00005 +  $299.75* 0.0001 + $9.75* 0.001 + (-$0.25) * (0.99885)= -$0.16

So expected winning is -16 cents.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.