Question

I buy one of 400 raffle tickets for $20. The sponsors then randomly select 1 grand prize worth $600, then 2 second prizes worth $200 each, and then 3 third prizes worth $50each. The selections are made without replacement.

(a) Complete the probability distribution for this raffle. Give your probabilities as a decimal (rounded to 4 decimal places) or as a fraction.

Outcomes	P(x)
Win Grand Prize
Win a Second Prize
Win a Third Prize
Win Nothing

(b) Recognizing that I spent $20 to buy a ticket, determine the expected value of this raffle to me as a player. Round your answer to the nearest penny.
dollars

(c) What is an accurate interpretation of this value?

It represents how much you would lose every time you play the game.

It represents how much you would win every time you play the game.    

It is meaningless because you can't actually win or lose this amount.

It represents the per-game average you would win/lose if you were to play this game many many times.

Answer 1