a cash prize of $4600 is to be awarded at a fundraiser. if 2300 tickets are sold at $7 each, find th

Discussion in 'Calculator Requests' started by math_celebrity, Oct 18, 2020.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    a cash prize of $4600 is to be awarded at a fundraiser. if 2300 tickets are sold at $7 each, find the expected value.

    Expected Value E(x) is:
    E(x) = Probability of winning * Winning Price - Probability of losing * Ticket Price

    Since only 1 cash price will be given, 2299 will be losers:
    E(x) = 4600 * (1/2300) - 2299/2300 * 7
    E(x) = 2 - 0.99956521739 * 7
    E(x) - 2 - 7
    E(x) = -5
     

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