Question

The PTO is selling raffle tickets to raise money for classroom supplies. A raffle ticket costs $2. There is 1winning ticket out of the 140 tickets sold. The winner gets a prize worth $88. Round your answers to thenearest cent.A)What is the expected value (to you) of one raffle ticket? $B)Calculate the expected value to you) if you purchase 12 raffle tickets. $=C)What is the expected value (to the PTO) of one raffle ticket?$=D)If the PTO sells all 140 raffle tickets, how much money can they expect to raise for the classroom supplies?

Answer 1

A) Expected value is given by

`\begin{gathered} \Sigma p_ix_i \\ \text{where p}_i=\text{ probability value} \\ x_i=\cos tofticket^{} \end{gathered}`

The probability of winning =

`(1)/(140)`

The probability of losing =

`1-(1)/(140)=(139)/(140)`

The gain or loss of winning = $88-$2= $86

The gain or loss of losing = -$2

Expected value =