Two thousand raffle tickets are sold for $3 each. Three prizes will be awarded: one for $1000
Question:
Two thousand raffle tickets are sold for $3 each. Three prizes will be awarded: one for $1000 and two for $500. Assume that the probability that any given ticket is selected for the $1000 prize is 1/2000 and the probability that any given ticket is selected for the $500 prize is 2/2000. Jeremy purchases one of these tickets.
(a) Determine his expected value.
(b) Determine the fair price of a ticket.
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a b Fair price 200 ...View the full answer
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Related Book For 
A Survey of Mathematics with Applications
ISBN: 978-0134112107
10th edition
Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde
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