What is the expected value of one 700 tickets in a raffle for a prize of $1400?
Expected value is obtained by summing the product of the prizes by the individual probabilities.
In this case, there is only one prize of $1400, of which the probability of getting it is 1/700. So the expected value is $1400*(1/700)=$2.
A charity is holding a raffle and sells 2000 tickets for $2 each. One ticket will win a grand prize of $500. Two other tickets will be selected to win consolation prizes of $50 each. Find the expected value if you buy one raffle ticket.
To calculate the expected value, we need to multiply the probability of winning the prize by the value of the prize.
The probability of winning depends on the total number of tickets. Let's assume there are N tickets in total. In this case, you have 700 tickets, so the probability of winning can be calculated as 700 divided by N.
As for the value of the prize, it is $1400.
Therefore, the expected value (EV) can be calculated as follows:
EV = (Probability of winning) x (Value of the prize)
= (700/N) x $1400
Please provide the total number of tickets (N) in order to calculate the expected value accurately.
To find the expected value of one 700 tickets in the raffle, you need to calculate the average value of the tickets. The expected value is obtained by multiplying the probability of winning by the value of the prize, then subtracting the cost of the tickets.
Let's break it down step by step:
1. Calculate the probability of winning: Since you have 700 tickets and there is only one prize, the probability of winning is given by 1 divided by the total number of tickets, which is 1/700.
2. Determine the value of the prize: In this case, the prize is $1400.
3. Calculate the cost of the tickets: Since you have 700 tickets, the cost would be 700 multiplied by the price per ticket. However, the cost per ticket is not given in the question, so we cannot determine this value without additional information. Assuming the cost per ticket is $X, the total cost would be 700X.
4. Calculate the expected value: Multiply the probability of winning (1/700) by the value of the prize ($1400), then subtract the cost of the tickets (700X). The formula for the expected value (EV) is:
EV = (1/700) * $1400 - 700X.
So, without knowing the cost per ticket, we cannot determine the exact expected value of one 700 tickets in this raffle.