One thousand raffle tickets are sold at $1 each. Three tickets will be drawn at random (without replacement), and each will pay $200 . Suppose you buy 5 tickets. (A) Create a payoff table for 0 , 1 , 2 , and 3 winning tickets among the 5 tickets you purchased. (If you do not have any winning tickets, you lose $5 ; if you have 1 winning ticket, you net $ 195 since your initial $5 will not be returned to you; and so on.) (B) What is the expected value of the raffle to you?
One thousand raffle tickets are sold at $1 each. Three tickets will be drawn at random (without replacement), and each will pay $200 . Suppose you buy 5 tickets. (A) Create a payoff table for 0 , 1 , 2 , and 3 winning tickets among the 5 tickets you purchased. (If you do not have any winning tickets, you lose $5 ; if you have 1 winning ticket, you net $ 195 since your initial $5 will not be returned to you; and so on.) (B) What is the expected value of the raffle to you?
Solution Summary: The author calculates the payoff table for 0,1,2, and 3 winning tickets among the 5 tickets bought from the one thousand raffle tickets sold at 1 each.
One thousand raffle tickets are sold at
$1
each. Three tickets will be drawn at random (without replacement), and each will pay
$200
. Suppose you buy
5
tickets.
(A) Create a payoff table for
0
,
1
,
2
,
and
3
winning tickets among the
5
tickets you purchased. (If you do not have any winning tickets, you lose
$5
; if you have 1 winning ticket, you net
$
195
since your initial
$5
will not be returned to you; and so on.)
(B) What is the expected value of the raffle to you?
In the carnival game Under-or-Over-Seven, a pair of fair dice is rolled once, and the resulting sum determines whether the player wins or loses his or her bet. For example, using method one, the player can bet $4.00 that the sum will be under 7, that is, 2, 3, 4, 5, or 6. For this bet, the player wins $4.00 if the result is under 7 and loses $4.00 if the outcome equals or is greater than 7. Similarly, using method two, the player can bet $4.00 that the sum will be over 7, that is, 8, 9, 10, 11, or 12. Here, the player wins $4.00 if the result is over 7 but loses $4.00 if the result is 7 or under. A third method of play is to bet $4.00 on the outcome 7. For this bet, the player wins $16.00 if the result of the roll is 7 and loses $4.00 otherwise. Table of outcomes is given.
A.)Construct the probability distribution representing the different outcomes that are possible for a $4.00 bet using method one.
B.)Construct the probability distribution representing the different…
Perry’s Garden Center sells three brands of riding mowers—Ranger, Turfmaster, and Colt. Fifty percent of the riding mowers they sell are Rangers, thirty five percent Turfmasters, and fifteen percent Colts. Each brand of mower comes with a one-year parts and labor warranty. Based on their records, Perry knows that the chance of a warranty claim is five percent for the Ranger, 15% for the Turfmaster, and 25% for the Colt. If Perry’s service manager tells him that a riding mower has just been brought in for a repair covered by the warranty,
a. What is the chance that the riding mower is a Colt?
b. What is the chance that the riding mower is a Turfmaster?
C.What is the chance that the riding mower is a Ranger?
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