Posted by bridgett on Sunday, October 23, 2011 at 5:18pm.
A community 5K run will award $50 to the winner. 60 people enter the race, and they each pay an entry fee of $20. Assuming they are all equally likely to win, what is a fair price for the competition? Round to the nearest cent
Can anyone help me get started on this one?

college math  R, Sunday, August 26, 2012 at 9:54pm
Randomgain values: 5020 = 30 ; 20
Probabilities: 1/60 ; 59/60

E(gain)= 30(1/60)20(59/60) = 1/2  (59/3)= (359)/6 = $9.33

A fair price would be 209.33 = $10.67