Homework SourseA school is holding a Fixed Raffle where only a certain numb
A school is holding a Fixed Raffle, where only a certain number of raffle tickets can be sold.
The school sold 650 of these tickets for $1 each. One of the tickets will win $195, two tickets will win $65, and 5 tickets will win $32.5.
What is the expected value of each of these tickets for the people that purchase one ticket? $ Round to the nearest penny and if the value is negative, put that into the box also.
Solution
Consider the table:
Thus, as we see, E(x) = Sum(x P(x)) = -0.25 [ANSWER]
| x (profit) | P(x) | x P(x) |
| 194 | 0.00153846 | 0.298462 |
| 64 | 0.00307692 | 0.196923 |
| 31.5 | 0.00769231 | 0.242308 |
| -1 | 0.98769231 | -0.98769 |
| Total | E(x) = | -0.25 |
