Question

and Fourthousand talle tickets are sold for $5 each. Three prizes wil be awarded, one for $1,500 and two for $750 Assume that the probability that any given ticket is selected for the $1,500 preis Winners do not have their ticket costs of $5 rounded to them. Jennifer purchases one of these tickets Complete parts and D the probability that wy given ticket is selected for a $750 price is 4,000 Determine Serwer's expected (Type wingetot a decimal onded to the newest hundredth as needed) in the price of a Type anveger a decimal rounded to the nor hundred as needed

Answer 1

(a)

Data	x	P(x)	x* P(x)
1st prize	1495	0.0003	0.374
2nd prize	745	0.0005	0.373
no prize	-5	0.9993	-4.996
	Total	1.000	-4.250

Expected value = $\sum x * P(x)$

Expected value = - 4.250

(b)

Fair price i.e. expected value = 0

suppose the price of ticket is x

(1500 - x)* 1/4000 + (750 - x) * 2/4000 - 3997x / 4000 = 0

1500/4000 - x/4000 + 1500/4000 - 2x/4000 - 3997x/4000 = 0

3000/4000 - 4000x/4000 = 0

3000/4000 -x = 0

x = 3000/4000 = 0.75

Fair price of the ticket = 0.75