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The student council is hosting a drawing to raise money for scholarships. They are selling tickets for $10 each and will sell 800 tickets. There is one $3,000 grand prize, two $200 second prizes, and fifteen $20 third prizes. You just bought a ticket. Find the expected value for your profit. Round to the nearest cent.

Respuesta :

Answer:  -$5.375

Explanation:

Given that,

Selling tickets = $10 each and sell 800 tickets

  • one $3,000 - grand prize
  • Two $200 - second prizes
  • Fifteen $20 - third prizes

[tex]E(x) = \frac{1}{800}\times3,000 + \frac{2}{800}\times200 + \frac{15}{800}\times20 + \frac{800-1-2-15}{800}\times0 - 10[/tex]

= 3.75 + 0.5 + 0.375 + 0 - 10

= -$5.375

Therefore, expected value for your profit is -$5.375