The UB Solar Decathlon team plans to raise money through a 5

The UB Solar Decathlon team plans to raise money through a 50-50 raffle. In a 50-50 raffle, 50% of the total money collected selling raffle tickets is randomly given to one of the donors, and the other 50% is kept by the raffle organizer (in this case, the UB Solar Decathlon team). Suppose that each ticket costs $1. How much money does the UB Solar Decathlon team raise if it sells exactly m raffle tickets? Suppose that the total number of tickets purchased is, M, is a binomially distributed random variable with parameters n and p. Use the law of iterated expectations to determine the expected amount of money that the UB Solar Decathlon team will raise.

Solution

A) EACH TICKETS COST FOR $1 AND IF TOTAL TICKETS SOLD ARE M TICKETS THEN TOTAL MONEY WILL RAISE = $M

B) EXPECTED MONEY = M*(PROBABILITY OF GETIING TICKETS) = M*P(X)