Asked by David
One thousand raffle tickets are sold for 1 dollar each, one prize of 800.00 dollars is to be awarded. Rene Condos purchases one ticket
a) Determine her expected value?
b) Determine the fair price of a ticket?
a) Determine her expected value?
b) Determine the fair price of a ticket?
Answers
Answered by
Reiny
prob(win) = 1/1000
Expected value = (1/1000)($800) = $.80
which would a "fair" price for the ticket.
Expected value = (1/1000)($800) = $.80
which would a "fair" price for the ticket.