Question

A charity is selling raffle tickets at $5 apiece. Out of the 100 tickets sold, ten third-place winners will be drawn, each winning $20. Five second-place winners will be drawn, each winning $50. Lastly, one grand prize of $100 will be awarded. Is a raffle with these rules a good idea for the charity? Why or why not?

Answer 1

how far did you get with this @kota112 ?

Answer 2

i know its yes im

Answer 3

why do you think "yes" ?

Answer 4

because i know its worth 50 cents

Answer 5

im trying to find out if its more or less than face value

Answer 6

50 cents? where are you getting that?

Answer 7

i know im buying these raffle tickets

Answer 8

Charity gets 5*100 = 500

Charity pays out winnings ---> 10*20 + 5*50 + 1*100 = 550

Charity loses 50 dollars

Answer 9

so its c?

Answer 10

you didn't list any answer choices

Answer 11

oh sorry i was looking at the wrong question

Answer 12

lol ??

Answer 13

heres the options haha just made a new account still getting used to it

Answer 14

No, because one ticket’s expected value is worth $0.50 more than the face value.
B.
Yes, because one ticket’s expected value is worth $0.50 more than the face value.
C.
Yes, because one ticket’s expected value is worth $0.50 less than the face value.
D.
No, because one ticket’s expected value is worth $0.50 less than the face value

Answer 15

dumbcow has the right idea

overall the charity will lose $50

if anything, they will probably pay back the $500 and not be able to pay that additional $50

Answer 16

@kota112 what should the price of the ticket be so that it's a fair game?

By "fair game" I mean that the charity gains no money nor loses money.

Answer 17

they will lose money

Answer 18

Let p = price of each ticket

As dumbcow pointed out, the charity will pay out $550 based on the rules above
They will get 100p dollars coming in

If it's a fair game, then the difference of the revenue and expenses will be zero

550 - 100p = 0

solve for p to get p = ??

Answer 19

oops I had that backwards, it should be 100p - 550 = 0

but in this case, the value of p remains the same

Answer 20

anyways, what do you get when you solve for p?

Answer 21

.50 less than face value so it would be d because its not a good idea for charity

Answer 22

well if you are in the person's shoes who wins the money then the expected value of their winnings is $5.50 which is 50 cents more than the ticket price ($5)

so on average, the charity is losing 50 cents per ticket

multiply that by 100 and you get 100*(50 cents) = 50 dollars total loss

Answer 23

okay thanks a lot:)

Answer 24

np