geometry
posted by angela .
One thousand raffle tickets are sold for
4.00 each. one grand prize of $800 and two consolation prizes of $ 100 each will be awarded. Jeremy purchases one ticket. Find his expected value.

assume the grand prize is drawn first
prop of winning = 1/1000
expected value = 800(1/1000) = 80 cents
prob of winning the consolation prize
= 1/999 + 1/998 (I assume the tickets are not returned to the pot)
expected value for Jeremy
= (1/1000)(800) + 100(1/999) + 100(1/998)
= 1.00
Respond to this Question
Similar Questions

Math
One thousand raffle tickets are sold for $4.00 each. One grand prize of $800 and two consolation prizes of $100 each will be awarded. Jeremy purchases one ticket. Find his expected value. 
Math
One thousand raffle tickets are sold for $4.00 each. One grand prize of $800 and two consolation prizes of $100 each will be awarded. Jeremy purchases one ticket. Find his expected value. 
Math
One thousand raffle tickets are sold for $1.00 each. One grand prize of $400 and two consolation prizes of $100 each will be awarded. Jeremy purchases one ticket. Find his expected value. ? 
geometry
One thousand raffle tickets are sold for $1.00 each. One grand prize of $200 and two consolation prizes of $50 each will be awarded. Jeremy purchases one ticket. Find his expected value. Show your work for full credit. 
stats math
Suppose you are selling raffle tickets for $3.00 each. You have the following prizes.1 grand prize of $150 1 prize of $75 1 prize of $50 1 prize of $25 5 prizes of $10 each A total of 500 raffle tickets are sold. What is the expected … 
College Math
Volunteers working to raise funds for a new community library sold 1000 raffle tickets at $10 each. Tickets are to be randomly drawn and prizes are awarded as follows: one prize of $1,000, twenty prizes of $50 and one hundred prizes … 
Math
Volunteers working to raise funds for a new community library sold 1000 raffle tickets at $10 each. Tickets are to be randomly drawn and prizes are awarded as follows: one prize of $1,000, twenty prizes of $50 and one hundred prizes … 
math
Ten thousand raffle tickets are sold. 1 first prize of $1800, 3 second prizes of $600 each, and 9 third prizes of $200 each are to be awarded, with all winners selected randomly. If you purchase one ticket, what are your expected winnings? 
math
five hundred raffle tickets are sold for $2 each. one prize of $400 is to be awarded. raul purchases one ticket. what is his expected value and fair price of the ticket. 
Math
One thousand raffle tickets are sold for 1 dollar each, one prize of 800.00 dollars is to be awarded. Rene Condos purchases one ticket a) Determine her expected value?