Question

We must show our work process

2. The golf shop is holding a raffle to win a TaylorMade M1 10.5” Regular Flex Driver ($350 value). Tickets are $5.00 each. Only 85 tickets will be sold. John Underpar buys 1 ticket.

a.    What are Mr. Underpar’s possible monetary outcomes? (Value if he wins and what does he lose)

b.    What are the probabilities of the possible outcomes?

a.    Winning -

b.    Not winning -

Answer 1

(a)

If Mr. Underpar wins, He will get a $350 worth Flex Driver and he paid $5 to buy the ticket. Thus,

Monetary benefit if he wins = 350 - 5 = $345

If Mr. Underpar doesn't win, he will get nothing but he paid $5 to buy the ticket. Thus,

Monetary benefit if he doesn't win = -$5

(b)

a. P(winning) = (No. of winning tickets)/(Total no. of tickets) = 1/85

b. P(not winning) = 1 - P(winning) = 1 - 1/85 = 84/85

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