Question

The PTO is selling raffle tickets to raise money for

classroom supplies. A raffle ticket costs $3.00. There is 1
winning ticket out of the 280 tickets sold. The winner gets
a prize worth $90.00.
What is the expected value (to you) of one raffle ticket?
The expected value (to you) of one raffle ticket is _________.
Calculate the expected value (to you) if you purchase 8
raffle tickets.
The expected value (to you) if you purchase 8 raffle
tickets is __________.
What is the expected value (to the PTO) of one raffle ticket?
The expexted value (to the PTO) of one raffle ticket is_________.
If the PTO sells all 280 raffle tickets, how much money can
they expect to raise for the classroom supplies?
The PTO can expect to raise_________ from selling all 280 tickets.

Answer 1

The expected value (to you) of one raffle ticket is -$0.15.

Explanation: The probability of winning is 1/280, so the expected value of winning is (1/280) * $90 = $0.32. The expected value of losing is (279/280) * (-$3) = -$2.97. So, the expected value (to you) of one raffle ticket is $0.32 - $2.97 = -$0.15.

The expected value (to you) if you purchase 8 raffle tickets is -$1.20.

Explanation: The expected value (to you) of one raffle ticket is -$0.15, so the expected value (to you) of eight raffle tickets is -$0.15 * 8 = -$1.20.

The expected value (to the PTO) of one raffle ticket is $0.05.

Explanation: The expected value (to the PTO) of one raffle ticket is the difference between the price of the ticket ($3) and the expected cost of the prize, which is (1/280) * $90 = $0.32. So, the expected value (to the PTO) of one raffle ticket is $3 - $0.32 = $2.68.

The PTO can expect to raise $840 from selling all 280 tickets.

Explanation: The total revenue from selling 280 raffle tickets is 280 * $3 = $840.