Question

A charity is holding a raffle to raise money. There is one car worth $30,000 and five $100 gift cards being raffled off. Each ticket costs $20, and there are a total of 5,000 tickets being sold. Which equation correctly depicts the calculation of the expected value for a ticket?

Answer 1

30.000+100-5000*20=x(sum of profits)

Answer 2

Answer:

Step-by-step explanation:

Given that a charity is holding a raffle to raise money.

Car is the gift offered and the car is worth 30000

Tickets sold = 5000

Out of 500 tickets one ticket would fetch the car worth 30000 dollars

and five gift cards will bring 100 dollars

Thus we have                             Total

Tickets        1           5       4994      5000

Gain        30000      100        0

Cost               20       20       20

Net gain  29980       80      -20

Prob           1/5000   5/5000  4994/5000

Expected value for a ticket = $29980(1/5000)+80*5(5/5000)-20(4994/5000$

=5.996+0.4-19.976

=-13.58

i.e. expected gain by participation=expectedvalue of ticket =-13.58

This negative indicates that the game is at the advantage of the charity conducting raffle and not for the participants