Question

Please show work so I understand how to solve thanks

A raffle has a grand prize of a Alaskan cruise valued at $12000 with a second prize of a Las Vegas getaway valued at $800. If each ticket costs $4 and 9400 tickets are sold, what are the expected winnings far a ticket buyer? Express to at least three decimal place accuracy in dollar form (as opposed to cents).
Answer: $

Answer 1

solution:

first price = $12000

second price = $800

total ticket sold = 9400

one ticket will get the grand prize so P(grand price ) = 1/9400,

one ticket will get the grand prize so, p(second prize) = 1/9400

payment for each ticket = $2

Probability of winning $12000 = 1/9400

probability of winning $800 = 1/9400

your expected value is = -4 + (1/9400 * 12000) + (1/9400 * 800) = -2.638$

2 nd method to solve this

total ticket 9400 @ $ 4

total money shelted out = 9400 * 4 = 37600

One ticket winning = 12000

one ticket winning = 800

Total value for all ticket for buyer = 12000 + 800 - 37600 = - 24800

average gain on each ticket will be = - 24800 / 9400 = - 2.638$