A service organization is selling $2 raffle
tickets as part of a fund-raising program. The first prize is a boat valued at $2950, and the second prize is a camping tent valued at $400. In addition to the first and second prizes, there are 25 $20 gift certificates to be awarded. The number of tickets sold is 300.
If x is the net gain to a player in a game of chance, the E(x) is usually negative. This value gives the average amount per game the player can expect to lose over the long run. In the above problem, find the expected net gain to the player for one play of the specified game.
Tags: calculus, Help., Probability
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December 18th, 2009 at 3:16 pm
E(X) = sum p(x)*X
1 first prize => p(1st) = 1/300 Gain: 2950-2 = 2948
1 2nd prize => P(2nd) = 1/300, Gain = 400 – 2 = 398
25 gifts => p(gift) = 25/300, Gain = 20 – 2 = 18
P(lose) = (300-27)/300, Gain = -2
E(X) = (2948)(1/300) + (398)(1/300) + (18)(25/300) + (-2)(273/300)