5.) Raffle ticket. Two thousand raffle tickets are sold for $3.00 each. Three prizes are awarded: one for $1000 and two for $500. Assume that the probability that any given ticket is selected for the $1000 prize is 1/2000 and the probability that any given ticket is selected for the $500 prize is 2/2000. Jeremy Sharp purchases one of the these tickets. a.) Determine his expected Value. b.) Determine the fair price of a ticket

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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5.) Raffle ticket. Two thousand raffle tickets are sold for $3.00 each. Three prizes are awarded:
one for $1000 and two for $500. Assume that the probability that any given ticket is selected for
the $1000 prize is 1/2000 and the probability that any given ticket is selected for the $500 prize is
2/2000. Jeremy Sharp purchases one of the these tickets.
a.) Determine his expected Value.
b.) Determine the fair price of a ticket
Transcribed Image Text:5.) Raffle ticket. Two thousand raffle tickets are sold for $3.00 each. Three prizes are awarded: one for $1000 and two for $500. Assume that the probability that any given ticket is selected for the $1000 prize is 1/2000 and the probability that any given ticket is selected for the $500 prize is 2/2000. Jeremy Sharp purchases one of the these tickets. a.) Determine his expected Value. b.) Determine the fair price of a ticket
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