A community 5K run will award $50 to the winner. 50 people enter the race, and they each pay an entry fee of $20.00. Assuming they are all equally likely to win , what is a fair price for the competition?
To determine a fair price for the competition, we need to consider the total amount collected from entry fees and the amount awarded to the winner.
Given that 50 people entered the race and paid an entry fee of $20.00 each, the total amount collected from entry fees is:
50 people * $20.00 = $1000.00
The prize for the winner is $50. To calculate a fair price, we need to divide the total amount collected from entry fees by the number of winners (which is 1 in this case), and add the prize amount:
Fair price = (Total entry fees collected / Number of winners) + Prize amount
Therefore, the fair price for the competition is:
($1000.00 / 1) + $50.00 = $1050.00.
So, a fair price for the competition would be $1050.00.