500 raffle tickets are sold at $2 each. One grand prize of $100 and two consolation prizes of $50 will be awarded. Find Jake’s expectation if he purchases one ticket.
2007-02-10 05:32:12 · 6 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
I don't mean to waste you time, but I suck so terribly at math and I just wanted to wish you luck. I saw the question and got anxious just looking at it.
2007-02-10 05:35:36 · answer #1 · answered by Barbara C 6 · 0⤊ 0⤋
Are you looking for an expert at buying raffle tickets?
500 tickets sold with 1 grand prize gives any one ticket a 1/500 chance of winning
2 consolation prizes gives a 2/500 chance of winning a consolation prize.
2007-02-10 13:39:58 · answer #2 · answered by rscanner 6 · 0⤊ 0⤋
So only 3 of the tickets would make you a winner.
That's 3/500 chance of getting a prize. 1/500 of getting $100 and 2/500 of getting $50 prizes.
2007-02-10 13:42:11 · answer #3 · answered by Anonymous · 0⤊ 0⤋
40 cents
1/500*100+1/500*50+1/500*50
2007-02-10 13:43:08 · answer #4 · answered by faceman888 4 · 0⤊ 0⤋
The 500 purchasers globally spend 1000$ and get back 200$ so globally loose 800$. Each looses 1.60$ in average.
So the expectation is -1,60$.
2007-02-10 13:57:21 · answer #5 · answered by gianlino 7 · 1⤊ 0⤋
faceman88 and gialano are both right.
Jake is paying $2 for something with an expected value of $.40, so the expected outcome for him in this transaction is a change to his wealth of -$1.60
"Expectation" is not a commonly used term outside of the classroom, so it may be defined differently by different textbooks. Based on your phrasing, I'd guess the -$1.60 answer is what's desired, not $0.40
2007-02-10 14:24:51 · answer #6 · answered by Curt Monash 7 · 0⤊ 0⤋