Question

Calculate the expected value (to you) if you purchase 12 raffle tickets. The formula is Expected Value = (Probability of Winning) × (Prize Amount) - ___________.

A) Ticket Cost
B) Taxes
C) Number of Participants
D) Random Variable

Answer 1

The expected value can be calculated using the formula: Expected Value = (Probability of Winning) × (Prize Amount) - (Ticket Cost). In this case, the correct answer would be A) Ticket Cost.

Step-by-step explanation:

The expected value can be calculated by multiplying the probability of winning by the prize amount and subtracting the ticket cost. In this case, you purchase 12 raffle tickets, so the ticket cost would be the value to subtract in the formula.

Expected Value = (Probability of Winning) × (Prize Amount) - (Ticket Cost)

Therefore, the correct answer to fill in the blank is A) Ticket Cost.