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?
Six friends play poker, each starting with $5. All bets are in multiples of $0.10.
How many ways are possible for the redistribution of the $30 after the night of poker?
A man went to Atlantic City with $2000 and placed 100 bets of $20 each, one after another, on the same number on the roulette wheel. There are 38 numbers on the wheel, and the gaming casino pays 35 times the amount bet if the ball drops into the bettor’s numbered slot in the roulette wheel. In addition, the bettor receives back the original $20 bet. Estimate how much money the man is expected to win or lose in Atlantic City.
Suppose a student is offered a chance to draw a card from an ordinary deck of 52 playing cards and win $24 for an ace, $11 for a king, and $4 for a queen. If the student pays $5 to play the game, what is the amount the student expects to win each time?$
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