The college hiking club is having a fund raiser to buy new equipment for fall and winter outings. The club is selling Chinese fortune cookies at a price of $1 per cookie. Each cookie contains a piece of paper with a different number written on it. A random drawing will determine which number is the winner of a dinner for two at a local Chinese restaurant. The dinner is valued at $37. Since fortune cookies are donated to the club, we can ignore the cost of the cookies. The club sold 725 cookies before the drawing. Lisa bought 27 cookies. Lisa's expected earnings can be found by multiplying the value of the dinner by the probability that she will win. What are Lisa's expected earnings? Round your answer to the nearest cent.
A)$1.43
B)$1.37
C)$35.62
D)$1.38
E)$37.00

Question

Quizplus · Accepted Answer

There were a total of 725 cookies and Lisa bought 27 of them. This means she has 27 chances out of 725 to win the dinner, which is a probability of 27/725 or 0.0372.

To calculate her expected earnings, we multiply the value of the dinner ($37) by the probability of winning (0.0372).

Expected earnings = $37 x 0.0372 = $1.38

Therefore, Lisa's expected earnings are $1.38.

The College Hiking Club Is Having a Fund Raiser to Buy