Question

A raffle has a grand prize of a Caribbean cruise valued at $14500 with a second prize of a Las Vegas getaway valued at $1500. If each ticket costs $3 and 8000 tickets are sold, what are the expected winnings for a ticket buyer? Express to at least three decimal place accuracy in dollar form (as opposed to cents).

Answer 1

Expected winning = -$0.9988

Explanation:

given data

cruise valued = $14500

getaway valued = $1500

ticket costs = $3

tickets sold = 8000

solution

we get here expected winnings for a ticket buyer so first we get

P (winning $14500) =
`(1)/(8000)`

P(winning $1500) =
`(1)/(8000)`

P(loosing $3) = 1 - 2 ×
`(1)/(8000)` =
`(7997)/(8000)`

so here Expected winning is

Expected winning = ( $14500 - 3 ) ×
`(1)/(8000)` + ( 1500 - 3 ) ×
`(1)/(8000)` - ( 3 ) ×
`(7997)/(8000)`

Expected winning = 1.8121 + 0.1871 - 2.998

Expected winning = -$0.9988