Question

Five thousand tickets are sold at $1 each for a charity raffle. Tickets are to be drawn at random and monetary prizes awarded as follows: 1 prize of $500, 3 prizes of $100,

Answer 1

To find the expected gain or loss in the raffle, calculate the expected value using the probabilities and values of the prizes.

Step-by-step explanation:

In this raffle, there are 5000 tickets sold at $1 each. The total amount collected from ticket sales is $5000. The prizes awarded are: 1 prize of $500, 3 prizes of $100, and 4 prizes of $25. To find the expected gain or loss, we need to calculate the expected value.

Expected value = (Probability of winning prize 1) * (Value of prize 1) + (Probability of winning prize 2) * (Value of prize 2) + (Probability of winning prize 3) * (Value of prize 3) + (Probability of winning prize 4) * (Value of prize 4) + (Probability of not winning any prize) * (Value of not winning any prize)

Using the information given, we can calculate the expected value.