A group holds a raffle to raise money. They sell 100 raffle tickets for $5 each. There is one grand prize worth $100, three second place prizes worth $25 each and 5 3rd place prizes worth $10 each. Find the expected value associated with the purchase of one ticket.

Question

anonymous · Answer

anyone? :/

king · Answer

u want to find the profit per ticket earned rite?

anonymous · Answer

@UnkleRhaukus  can you please help me?

unklerhaukus · Answer

you are looking for the expected return value of a ticket

anonymous · Answer

can you help me with the question though?

unklerhaukus · Answer

total ticket purchases are $5x100=$

total returns are 1x$100+3x$25+5x$10=$

king · Answer

thatz 225$

unklerhaukus · Answer

the expected value will be$$ $5\times\frac{$225}{$500} $$

king · Answer

2.25$?

king · Answer

thats the profit per ticket....thats what i said!

unklerhaukus · Answer

no, $2.25 is what each ticket is worth, the profit per ticket will be $5-$2.25=$2.75

unklerhaukus · Answer

i am not sure if the question is asking for the excepted value for the ticket or for the expected value of a sale of a ticket

anonymous · Answer

I think you're right $2.75