Provide an appropriate response.
-In a raffle 1000 tickets are being sold at $1.00 each.The first prize is $100,and there are 3 second prizes fo $50 each.By how much does the price of a ticket exceed its expected value?
A)$1.75
B)$50
C)$0.75
D)$1.00

Question

Quizplus · Accepted Answer

Expected value = (Probability of winning 1st prize x Value of 1st prize) + (Probability of winning 1 of 3 second prizes x Value of second prize) = (1/1000 x $100) + (3/1000 x $50) = $0.40

Price of a ticket = $1.00

Price of a ticket in excess of expected value = $1.00 - $0.40 = $0.60

Therefore, the answer is C) $0.75, as none of the given options match the calculated amount.

Provide an Appropriate Response