Question

A charitable organization raises funds by selling 2000 raffle tickets for first prize worth $500 and a second prize worth $100. what is the mathematical expectation of a person who buys one of the ticket. what is the mathematical expectation of a person who buys three of the ticket​

Answer 1

The mathematical expectation for a person who buys one ticket is $0.35, and for a person who buys three tickets, it is $1.05.

Step-by-step explanation:

To find the mathematical expectation of a person who buys one ticket, we need to calculate the expected value. The expected value is calculated by multiplying each outcome by its probability and summing up the results. In this case, the first prize is worth $500 and has a probability of 1/2000, and the second prize is worth $100 with a probability of 1/2000. Therefore, the expected value for one ticket is:

(1/2000) * $500 + (1/2000) * $100 = $0.30 + $0.05 = $0.35

To calculate the mathematical expectation of a person who buys three tickets, we simply multiply the expected value of one ticket by three:

$0.35 * 3 = $1.05