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The student council is hosting a drawing to raise money for scholarships. They are selling tickets for $10 each and will sell 700 tickets. There is one $2,000 grand prize, three $300 second prizes, and twelve $30 third prizes. You just bought a ticket. Find the expected value for your profit. Round to the nearest cent.

The student council is hosting a drawing to raise money for scholarships. They are selling tickets for $10 each and will sell 700 tickets. There is one $2,000 grand prize, three $300 second prizes, and twelve $30 third prizes. You just bought a ticket. Find the expected value for your profit. Round to the nearest cent.

MATLAB: An Introduction with Applications
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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**Problem Statement:** The student council is hosting a drawing to raise money for scholarships. They are selling tickets for $10 each and will sell 700 tickets. There is one $2,000 grand prize, three $300 second prizes, and twelve $30 third prizes. You just bought a ticket. Find the expected value for your profit. Round to the nearest cent. **Answer Box:** ``` $_____ ``` **Hints and Resources:** - [Hint](#) - [Video on Expected Value](#) **Action Button:** - [Submit Question](#) **Explanation:** The problem presents a scenario where you need to calculate the expected value of your profit when you buy a ticket in a drawing. The calculation involves understanding the probabilities and potential outcomes: - 1 ticket out of 700 wins the $2,000 grand prize. - 3 tickets out of 700 win the $300 second prize. - 12 tickets out of 700 win the $30 third prize. The expected value is calculated as the sum of each possible outcome weighted by its probability. You would subtract the cost of the ticket ($10) from each prize to get the net outcomes before multiplying by the respective probabilities.
Transcribed Image Text:**Problem Statement:** The student council is hosting a drawing to raise money for scholarships. They are selling tickets for $10 each and will sell 700 tickets. There is one $2,000 grand prize, three $300 second prizes, and twelve $30 third prizes. You just bought a ticket. Find the expected value for your profit. Round to the nearest cent. **Answer Box:** ``` $_____ ``` **Hints and Resources:** - [Hint](#) - [Video on Expected Value](#) **Action Button:** - [Submit Question](#) **Explanation:** The problem presents a scenario where you need to calculate the expected value of your profit when you buy a ticket in a drawing. The calculation involves understanding the probabilities and potential outcomes: - 1 ticket out of 700 wins the $2,000 grand prize. - 3 tickets out of 700 win the $300 second prize. - 12 tickets out of 700 win the $30 third prize. The expected value is calculated as the sum of each possible outcome weighted by its probability. You would subtract the cost of the ticket ($10) from each prize to get the net outcomes before multiplying by the respective probabilities.
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