Question

There is a raffle with 125 tickets. One ticket will win a $920 prize, and the rest will win nothing. X is the payoff for one ticket in the raffle. Write the probability distribution of X in the table below.

Write each probability as an exact decimal.

Answer 1

`\begin{array}c \cline{1-2}X & P(X)\\\cline{1-2}920 & 0.008\\\cline{1-2}0 & 0.992\\\cline{1-2}\end{array}`

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Step-by-step explanation:

There are 125 tickets total, and 1 winning ticket.

The probability of winning is 1/125 assuming each ticket is likely to be chosen.

1/125 = 0.008

This value is exact without any rounding.

The probability of getting any other ticket is 1-0.008 = 0.992; this is because the probability of winning and losing must add to 1.

X is the payoff for one ticket. Winning gives a payoff of $920; while losing has a payoff of $0

The probability distribution table that we form is shown in the answer section at the top.