Expected Value Example 2: The Red Cross is selling raffle tickets as a fund raiser. They have 10,000 tickets to sell for $1 each. They will draw 3 winners after all the tickets are sold. The first-place winner will receive $750, second-place winner will get $500 and the third-place winner gets $250. a) Using the information above fill in the probability model in the table below: Prize: First Place Second Place Third Place None Amount: $0 Probability: b) Calculate the expected value of a ticket? Show work! c) Interpret what that expected value mean in context to this scenario.
Expected Value Example 2: The Red Cross is selling raffle tickets as a fund raiser. They have 10,000 tickets to sell for $1 each. They will draw 3 winners after all the tickets are sold. The first-place winner will receive $750, second-place winner will get $500 and the third-place winner gets $250. a) Using the information above fill in the probability model in the table below: Prize: First Place Second Place Third Place None Amount: $0 Probability: b) Calculate the expected value of a ticket? Show work! c) Interpret what that expected value mean in context to this scenario.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Please help with example 2
Transcribed Image Text:Expected Value Example 2:
The Red Cross is selling raffle tickets as a fund raiser. They have 10,000 tickets to sell for $1 each. They will
draw 3 winners after all the tickets are sold. The first-place winner will receive $750, second-place winner will
get $500 and the third-place winner gets $250.
a) Using the information above fill in the probability model in the table below:
Prize:
First Place Second Place Third Place None
Amount:
$0
Probability:
b) Calculate the expected value of a ticket? Show work!
c) Interpret what that expected value mean in context to this scenario.
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