The PTO is selling raffle tickets to raise money for classroom supplies. A raffl
ID: 3245728 • Letter: T
Question
The PTO is selling raffle tickets to raise money for classroom supplies. A raffle ticket costs $2. There is 1 winning ticket out of the 250 tickets sold. The winner gets a prize worth $84. Round your answers to the nearest cent.
What is the expected value (to you) of one raffle ticket? $_______
Calculate the expected value (to you) if you purchase 8 raffle tickets. $________
What is the expected value (to the PTO) of one raffle ticket? $________
If the PTO sells all 250 raffle tickets, how much money can they expect to raise for the classroom supplies? $_________
Explanation / Answer
Answer to question# 1)
Each ticket cost $2
P(win) = 1/250
Winning prize = $84
.
profit of winner = 84-2 = $82
Loss of 249 people = -$2
.
Expected value = $82 - $2 *249
Expected value = -$416
.
Answer to question# 2)
The expected value of 8 tickets will be : 8 * -416 = -3328
.
Answer to question# 3)
To the PTO the expected value would be : 2*249 - 82 = $416
He can expect to raise 416 dollars if he sells 250 tickets
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