Math Problem Statement
Suppose a charitable organization decides to raise money by raffling a trip worth $500. If 3,000 tickets are sold at $1.00 each and there is only one winner. What is the expected value per ticket for the organization? Question 10 options:
$0.17
-$0.81
-$0.17
$.83
Solution
To find the expected value per ticket for the organization, we need to consider both the revenue from selling the tickets and the cost of the prize.
-
Revenue from tickets:
The organization sells 3,000 tickets at $1 each, so the total revenue is: -
Cost of the prize:
The prize is worth $500. -
Net revenue:
The net revenue for the organization is the total revenue minus the cost of the prize: -
Expected value per ticket:
Since the net revenue is $2,500 and 3,000 tickets are sold, the expected value per ticket for the organization is:
Therefore, the expected value per ticket for the organization is approximately $0.83.
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Math Problem Analysis
Mathematical Concepts
Probability
Expected Value
Revenue Calculation
Formulas
Total Revenue = Number of Tickets × Price per Ticket
Net Revenue = Total Revenue - Cost of Prize
Expected Value per Ticket = Net Revenue / Number of Tickets
Theorems
Basic principles of expected value
Suitable Grade Level
Grades 9-11
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