Question

The student council is hosting a drawing to raise money for scholarships. They are selling tickets for $8 each and will sell 700 tickets. There is one $3,000 grand prize, four $200 second prizes, and twelve $30 third prizes. You just bought a ticket. Find the expected value for your profit. Round to the nearest cent.

$________

Answer 1

i am denoting gain by + sign and loss by - sign.

the probability distribution table be:-

x	P(x)
(3000-8) = 2992	1/700
(200-8) = 192	4/700
(30-8) = 22	12/700
-8	(700-(1+4+12))/700 = 683/700

the expected value(profit) of the game is :-

you will expect a loss of $ 2.06

*** if you have any doubt regarding the problem ,please write it in the comment box...if satisfied,please UPVOTE.