3. McDonald's is having a promotional lottery. They print 5,000 prize tickets to be peeled off...

 

Transcribed Image Text:

3. McDonald's is having a promotional lottery. They print 5,000 prize tickets to be peeled off cups and fries. The prizes and corresponding number of tickets are listed in the table; i.e., 1 in 5000 tickets is a $5,000 prize, 5 in 5,000 tickets are $1,000 prizes, etc. Suppose you have bought one of the tickets and are now interested in knowing more about the set up of the lottery. Use the information in the table to build box models to answer the questions. Prize Amount $5000 $1000 $50 $5 $0 Tickets 1 100 500 4394 (a) What is the expected value of prize money for 1 ticket? (b) What is the standard error of prize money for 1 ticket? (c) Suppose you and three friends have agreed to split your winnings evenly and have bought 50 tickets collectively. What is the probability the four of you will win $5 or more before splitting? (d) If the meal to get a ticket costs you $6, what is the probability you will lose money off of the 50 tickets you purchased in c (hint: don't do too much work to find the average of the new box)? 3. McDonald's is having a promotional lottery. They print 5,000 prize tickets to be peeled off cups and fries. The prizes and corresponding number of tickets are listed in the table; i.e., 1 in 5000 tickets is a $5,000 prize, 5 in 5,000 tickets are $1,000 prizes, etc. Suppose you have bought one of the tickets and are now interested in knowing more about the set up of the lottery. Use the information in the table to build box models to answer the questions. Prize Amount $5000 $1000 $50 $5 $0 Tickets 1 100 500 4394 (a) What is the expected value of prize money for 1 ticket? (b) What is the standard error of prize money for 1 ticket? (c) Suppose you and three friends have agreed to split your winnings evenly and have bought 50 tickets collectively. What is the probability the four of you will win $5 or more before splitting? (d) If the meal to get a ticket costs you $6, what is the probability you will lose money off of the 50 tickets you purchased in c (hint: don't do too much work to find the average of the new box)?