Question

The college hiking club is having a fund raiser to buy new equipment for fall and winter outings. The club is selling Chinese fortune cookies at a price of $1 per cookie. Each cookie contains a piece of paper with a different number written on it. A random drawing will determine which number is the winner of the dinner for two at a local Chinese restaurant. The dinner is valued at $35. Since the fortune cookies were donated to the club, we can ignore the cost of the cookies. The club sold 728 cookies before the drawing.

(a) Lisa bought 29 cookies. What is the probability she will win the dinner for two?
(b) Lisa's expected earnings can be found by multiplying the value of the dinner by the probability that she will win. What are Lisa's expected earnings?
(c) How much did she effectively contribute to the hiking club?

Answer 1

27.6058 $

Explanation:

Given that the college hiking club is having a fund raiser to buy new equipment for fall and winter outings. The club is selling Chinese fortune cookies at a price of $1 per cookie. Each cookie contains a piece of paper with a different number written on it. A random drawing will determine which number is the winner of the dinner for two at a local Chinese restaurant. The dinner is valued at $35.

a) For 29 cookies favorable outcomes are 29

Total outcomes are 728

a) Hence probability that Lisa will win the dinner for two =
`(29)/(728) \\=0.0398`

b) Expected earnings of Lisa=
`35*0.0398\\= 1.3942` dollars

c) She contributed 29 - 1.3942 = 27.6058