Question

St. Mary's Church is holding a raffle in which 1172 tickets have been sold at a cost of $2.00 each. Three prizes will be awarded: 1 for S500;1 for $250; 1 for $125. If you buy one ticket, then your expected value for this raffle is $ You do not need to include the dollar sign (S) with your answer. Give your answer as numerical value rounded to 2 decimal places. No $ sig?n

Answer 1

Answer:

Step-by-step explanation:

Given that St. Mary's Church is holding a raffle in which 1172 tickets have been sold at a cost of $2.00 each.

Three prizes will be awarded: 1 for S500;1 for $250; 1 for $125.

Thus total number of tickets = 1172

Of these prize winning are 3

i.e. Tickets        Prize $     Net win amount            Prob       Net win amt*prob

         1                 500                (500-2) =448          1/1172           448/1172

         1                250                 (250-2) =248          1/1172           248/1172

          1               125                   (125-2) =123            1/1172          123/1172

       1169               0                    (0-2) =    -2             1169/1172    -2338/1172

Expected value = Total                                                                 -1519/1172

=-1.296