Debra is buying prizes for a game at her school's fundraiser. The game has three levels of prizes, and she has already bought the second and third prizes. She spent $1.54 on each second place prize and $0.77 on each third place prize. She wants the first prize to be nice enough to attract people to the game. The game's manufacturer has told her that the probability of winning a third prize is 0.41, of winning a second prize is 0.28 and of winning a first prize is 0.21. Tickets cost $3 each and she wants the school to profit an average of $ 1 per ticket.
What does the expected value of each ticket need to be in order for the school to make a profit of $ 1 per ticket? $
How much should she spend on each first prize? $
1 answer