total prizes: 50000+2+1+1 = 50004
so multiply each prize by its chances of being drawn, and add them up:
50000/1000000 * 1.50
+ 2/1000000 * 1200
+ ...
In its flip a lid contest, a coffee chain offers prizes of 50,000 free coffees, each worth $1.50; two new TVs, each worth $1200; a snowmobile worth $15 000; and sports car worth $35 000. A total of 1 000 000 promotional coffee cups have been printed for contest. Coffee sells for $1.50 per cup. What is the expected value of cup of coffee to the customer?
2 answers
50000/1000000 1.5
2/1000000 1200
1/1000000 15000
1/1000000 35000
(0.05x1.5) + (0.000002x1200) + (0.000001x15000) + (0.000001x35000) =
(.075) + (0.0024) + (0.015) + (0.035) = 0.1274
I am right ?
2/1000000 1200
1/1000000 15000
1/1000000 35000
(0.05x1.5) + (0.000002x1200) + (0.000001x15000) + (0.000001x35000) =
(.075) + (0.0024) + (0.015) + (0.035) = 0.1274
I am right ?
2 answers