Five hundred chances are sold at $7 apiece for a raffle. There is a grand prize of $650, two second prizes of $300, and five third prizes of $75. First calculate the expected value of the lottery. Determine whether the lottery is a fair game. If the game is not fair, determine a price for playing the game that would make it fair. The expected value of the game is $ (Type an integer or a decimal. Round to the nearest cent.)
Five hundred chances are sold at $7 apiece for a raffle. There is a grand prize of $650, two second prizes of $300, and five third prizes of $75. First calculate the expected value of the lottery. Determine whether the lottery is a fair game. If the game is not fair, determine a price for playing the game that would make it fair. The expected value of the game is $ (Type an integer or a decimal. Round to the nearest cent.)
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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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.
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Transcribed Image Text:**Raffle Lottery Analysis**
Five hundred chances are sold at $7 apiece for a raffle. There is a grand prize of $650, two second prizes of $300, and five third prizes of $75.
1. **Task:** First, calculate the expected value of the lottery.
Determine whether the lottery is a fair game. If the game is not fair, determine a price for playing the game that would make it fair.
2. **Expected Value:**
The expected value of the game is $ ___.
*(Type an integer or a decimal. Round to the nearest cent.)*
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**Instructions:**
Enter your answer in the answer box and then click "Check Answer."
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