Lottery: I buy one of 250 raffle tickets for $10. The sponsors then randomly sel

Question

Lottery: I buy one of 250 raffle tickets for $10. The sponsors then randomly select 1 grand prize worth $800, then 2 second prizes worth $200 each, and then 5 third prizes worth $100 each. The selections are made without replacement. Fill in P(x)

(a) Complete the probability distribution for this raffle. Give your probabilities as a decimal (rounded to 4 decimal places) or as a fraction.

(b) Recognizing that I spent $10 to buy a ticket, determine the expected value of this raffle to me as a player. Round your answer to the nearest penny.
dollars

(c) What is an accurate interpretation of this value?

It represents the per-game average you would win/lose if you were to play this game many many times.It is meaningless because you can't actually win or lose this amount.    It represents how much you would lose every time you play the game.It represents how much you would win every time you play the game.

Outcomes          P(x)          Win Grand Prize     Win a Second Prize     Win a Third Prize     Win Nothing    

Explanation / Answer

probabilty of winning grand prize =1/250 =0.004

probabilty of winning second prize =2/249=0.008

probabilty of winning 3 rd prize =5/247=0.02

probabilty of winning nothing =1-0.004-0.008-0.02=0.968

b) expecetd value =sum of x*p =$-3.2

c)It represents the per-game average you would win/lose if you were to play this game many many times.It is meaningless because you can't actually win or lose this amount.

outcome outcome(x) P(x) x*P(x) win grand prize 790 0.004 3.16 second prize 190 0.008 1.52 third prize 90 0.02 1.8 nothing -10 0.968 -9.68 total -3.2

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