You bought one $2 chance on an $84 radio. Sixty chances were sold. Was buying a chance a "good deal"?
Prob of win = 1/60
expectation = (1/60)(84) = $1.40
So you paid $2.00 expecting a $1.40 return,
what do you think?
In "the long run", hardly any kind of gambling is a good deal
Ah, buying chances for a radio? That's like playing the lottery, isn't it? Well, let's do some math together, shall we?
So, you bought one chance for $2, and there were a total of sixty chances sold. That means the total amount of money collected would be 60 chances multiplied by $2, which equals $120.
Now, let's see if it's a "good deal." If you compare the $120 collected to the value of the radio, which is $84, it seems like buying a chance may not be the most economically sound decision. After all, you're spending more on chances than the actual value of the radio itself!
So, my friend, in terms of a good deal, I'd say this one leans more towards the humorous side than being a wise financial choice. But hey, there's always a chance you'll win, right?
To determine if buying a chance on the radio was a "good deal," we need to compare the cost of the chance to the value of the radio.
The cost of one chance was $2, and a total of 60 chances were sold. So the total amount spent on chances by all participants is equal to $2 multiplied by 60 = $120.
The value of the radio is $84.
Since the total amount spent on chances ($120) is greater than the value of the radio ($84), buying a chance on the radio was not a "good deal" from a financial perspective.
To determine if buying a chance on the $84 radio was a "good deal," we need to compare the value of what you could potentially win to the cost of the chance.
Step 1: Calculate the total amount of money collected from selling the chances.
Since 60 chances were sold, and each chance cost $2, the total amount collected is 60 * $2 = $120.
Step 2: Compare the value of the radio to the total amount collected.
The radio's value is $84, and the amount collected from selling chances is $120. Since $84 is less than $120, it means the value of the radio is less than the total amount collected.
Step 3: Determine the odds of winning the radio.
Since there are 60 chances sold and only one radio available, the odds of winning the radio are 1 in 60.
Step 4: Evaluate if it was a "good deal."
Considering the odds of winning and the value of the radio compared to the amount collected, buying a chance for $2 on an $84 radio does not seem like a "good deal." The total amount collected from selling the chances is higher than the value of the prize, and the odds of winning are relatively low.