What is the expected value?
What is the fair price of the ticket?
2006-12-12 09:10:11 · 3 answers · asked by lil_one479 1 in Education & Reference ➔ Homework Help
I'm not sure I understand your two questions, but based on what I think:
If I purchase one ticket out of 1000, then my chances of winning the prizes are as follows:
$400 - 1 in 994
$200 - 1 in 994
$50 - 5 in 998
The value of my ticket would be: $1150/993 = $1.16 if I didn't win, and either $400, $200, or $50 if I did.
The fair price of the ticket would be: $1.16 or $2.00 if I didn't win, and either $400, $200, or $50 if I did.
I hope this helps.
2006-12-12 09:32:50 · answer #1 · answered by Goyo 6 · 0⤊ 0⤋
850 is the total prise money, 1150 is the total profits gained for the seller. the fair price is $2 set by the seller and there is no expected value as its a raffle.
2006-12-12 17:22:48 · answer #2 · answered by sufferingnomad 5 · 0⤊ 0⤋
2000$$$$$$$$$$$$$$
2006-12-12 17:16:31 · answer #3 · answered by Anonymous · 0⤊ 0⤋