800 hundred chances are sold at $2 apiece for a raffle. There is a grand prize of $650 dollars, two second prizes of $250, and five third prizes of $50. First calculate the expected value of the lottery. Determine if the lottery is a fair game. If the game is not fair, determine a price for playing the game that would make it fair.
Math 142 - Reiny, Friday, October 19, 2012 at 7:45pm
several important questions affect the calculations
1. Are the winning tickets returned ? (more than likely they are not)
2. What is the order of drawing the winning tickets, that is, is the first price drawn last ? etc