For a fund raiser,the local chapter of Pie Eaters Anonymous is offering a set of silver pie pans worth $1000.Each of the 1200 raffle tickets cost $2.What is the expected value for this raffle?
A)-$1.17
B)$2
C)$1400
D)-$0.01

Question

Quizplus · Accepted Answer

The expected value is the sum of the possible winnings multiplied by their probabilities. In this case, the possible winnings are $1000 and $0, and the probabilities are 1/1200 and 1199/1200, respectively. Therefore, the expected value is (1000 * 1/1200) + (0 * 1199/1200) = $0.83. Since the cost of a ticket is $2, the expected value for this raffle is -$1.17.

For a Fund Raiser,the Local Chapter of Pie Eaters Anonymous