Question

A charity is holding a raffle to raise money. There is one car worth $30,000 and five $100 gift cards being raffled off. Each ticket costs $20, and there are a total of 5,000 tickets being sold. Which equation correctly depicts the calculation of the expected value for a ticket?

Answer 1

There is a total of $35,000 worth of prizes being given out for 5,000 tickets.  We can find the expected value for each ticket by dividing 35,000/5,000.  This equals $7.00.

Answer 2

Answer: The required equation is,

`29980((1)/(5000))+80((5)/(5000))-20((4994)/(5000))`

Explanation:

Since, the total number of tickets = 5000,

In which Each ticket costs $20,

Also, There is one car worth $30,000 and five $100 gift cards being raffled off,

Thus, by these informations we can make the following table,

Number of tickets 1 5 4994

Listed price($) 30,000 100 0

Loss 20 20 20

Actual price($) 29980 80 -20

Probability 1/ 5000 5/5000 4994/5000

We know that,

Expected value = Actual value × Probability,

Hence, the expected value for a ticket

`=29980((1)/(5000)) + 80((5)/(5000))-20((4994)/(5000))`

Which is the required equation.