Two thousand raffle tickets are sold for $3.00 each. Three prizes will be awarded. One for $1000, two for $500. Assume that the probability that any given ticket is selected for $1000 prize is 1/2000 and the probability that any given ticket selected for the $500 prizes is 2/2000. Tom purchases one of these tickets: a) determine his expected value.b) determine the fair price (FP) of a ticket.

Two thousand raffle tickets are sold for $3.00 each. Three prizes will be awarded. One for $1000, two for $500. Assume that the probability that any given ticket is selected for $1000 prize is 1/2000 and the probability that any given ticket selected for the $500 prizes is 2/2000. Tom purchases one of these tickets: a) determine his expected value.b) determine the fair price (FP) 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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