Five thousand raffle tickets are to be sold at 20 each to be

Five thousand raffle tickets are to be sold at $20 each to benefit a local community group. The prizes, the number of each prize to be given away, and the dollar value of winnings for each prize are as follows: Prize Number Value Automobile 1 $23,000 Entertainment center 2 $3,000 each DVR 25 $100 each Gift certificate 50 $20 each Define the random variable X as winnings where winnings = dollar value of prize – cost of ticket. If you buy one ticket, what are your expected winnings?

Solution

X = AUTOOBILE = 23000-20 =22980

X= 6000-20=5980

X= 2500-20 = 2480

X= 1000-20 =980

THESE ALL ARE THE WINNING PRIZE MENTIONED ABOVE

E(X) = X*P(X)

22980*1/5000+6000*1/5000+2480*1/5000+980*1/5000 = 5.59 + 1.2+0.5+0.2 = 7.8