The prizes that can be won in a sweepstakes are listed below together with the chances of winning each one: $3500 (1 chance in 8800); $1400 (1 chance in 6300); $600 (1 chance in 3000); $200 (1 chance in 2900). Find the expected value of the amount won for one entry if the cost of entering is 55 cents.
A) $0.34
B) $0.42
C) $200
D) $0.82

Question

Quizplus · Accepted Answer

The expected value is calculated by multiplying each prize by its probability and summing these values, then subtracting the cost of entry. The expected value is approximately $0.34.

The Prizes That Can Be Won in a Sweepstakes Are