Question

Fifty raffle tickets, each worth $5 are sold. One ticket will win $55 and two tickets will win $15. Let X denote the gain from buying one ticket. Complete the following table: P(x) x. P(x) х 50 10 -5 Total What is the expected gain from buying one ticket? Ans: Loss of $

Answer 1

say one 50 sald X denotes the gain from buying Hicket. One ticket will gain 50 $ ; so probabi- lity P, = // ( 50 Hubes are) Two ticket will gain 10$; so prob- ability = P2 = 2/3 Rest, 47 will lost s $; probability = $3 = 47 50 P(2) x. P(x) 1/50 2150 47/50 - 4.7 1 so 04 loss so expected gain on loss = xip(x) = 1+0.4- 4.7 expected gain - - 3.3 -ve sign shows that there is loss from buying one ticket. -ve=(negative)