A raffle has a grand prize of a Caribbean cruise valued at $13,000 with a second prize of a Rocky Point vacation valued at $800. If each ticket costs $5 and 11400 tickets are sold, what are the expected winnings far a ticket buyer? Round to the nearest penny. 2.) The owner of a small firm has just purchased a personal computer, which she expects will serve her for the next two years. The owner has been told that she "must" buy a surge suppressor to provide protection for her new hardware against possible surges or variations in the electrical current, which have the capacity to damage the computer. The amount of damage to the computer depends on the strength of the surge. It has been estimated that there is a 2% chance of incurring 450 dollar damage, 5% chance of incurring 200 dollar damage, and 14% chance of 200 dollar damage. An inexpensive suppressor, which would provide protection for only one surge, can be purchased. How much should the owner be willing to pay if she makes decisions on the basis of expected value? The expected cost due to surge damage is
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
1.) A raffle has a grand prize of a Caribbean cruise valued at $13,000 with a second prize of a Rocky Point vacation valued at $800. If each ticket costs $5 and 11400 tickets are sold, what are the expected winnings far a ticket buyer? Round to the nearest penny.
2.) The owner of a small firm has just purchased a personal computer, which she expects will serve her for the next two years. The owner has been told that she "must" buy a surge suppressor to provide protection for her new hardware against possible surges or variations in the electrical current, which have the capacity to damage the computer. The amount of damage to the computer depends on the strength of the surge. It has been estimated that there is a 2% chance of incurring 450 dollar damage, 5% chance of incurring 200 dollar damage, and 14% chance of 200 dollar damage. An inexpensive suppressor, which would provide protection for only one surge, can be purchased. How much should the owner be willing to pay if she makes decisions on the basis of
The expected cost due to surge damage is
1) Given Information:
A raffle has a grand prize of a Caribbean cruise valued at $13,000 with a second prize of a Rocky Point vacation valued at $800.
If each ticket costs $5 and 11400 tickets are sold, what are the expected winnings for a ticket buyer:
First prize is 13000
Second prize is 800
11400 tickets are sold.
P(getting the first grand prize) = P(winning 13000)=
p(second grand prize) = P(winning 800) = .
You pay 2 dollars for each ticket.
Expected value is obtained as follows:
Thus, the expected winnings for a ticket buyer is -$0.79
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