Question

In a raffle, one ticket out of 100 will win a $190 prize, two tickets will win a $90 prize, and four tickets will win a $50 prize. The other tickets will win nothing. X is the payoff for one ticket in the raffle. Rank the probabilities to match the money amounts.
(4 Points)

0.93
0.04
0.02
0.01

Answer 1

To match the probabilities with the money amounts in the raffle, we first calculate the total number of tickets and how many tickets win each prize.

- Total tickets = 100
- Winning tickets:
- 1 ticket wins $190 (1 ticket)
- 2 tickets win $90 (2 tickets)
- 4 tickets win $50 (4 tickets)

Now, we can summarize the outcomes:

- **Winning $190:** 1 ticket (Probability = 1/100 = 0.01)
- **Winning $90:** 2 tickets (Probability = 2/100 = 0.02)
- **Winning $50:** 4 tickets (Probability = 4/100 = 0.04)
- **Winning nothing:** 93 tickets (Probability = 93/100 = 0.93)

Now we can rank them based on the money amounts:

1. **$190 prize** - Probability = 0.01
2. **$90 prize** - Probability = 0.02
3. **$50 prize** - Probability = 0.04
4. **$0 prize (winning nothing)** - Probability = 0.93

The final ranking of the probabilities corresponding to the money amounts is:
- $0.93 (nothing)
- $0.04 (winning $50)
- $0.02 (winning $90)
- $0.01 (winning $190)