Financial expectation help! (1 Viewer)

[freakinout]

ok heres the question and i dont know how to do it...

Dana bought 2 tickets in a raffle... the tickets cost $5 each. 500 tickets were sold and the 1st prize is $1000. calculate her financial expectation..

 

[Muzzaw]

ok heres the question and i dont know how to do it...

Dana bought 2 tickets in a raffle... the tickets cost $5 each. 500 tickets were sold and the 1st prize is $1000. calculate her financial expectation..

Financial expectation = (2/500) x 1000 - 2 x 5
= -$6

That right?

 

[Digital_Spork]

2/500 * $1000 + 498/500 * -$10

= -$5.96 I think, I hope

WAit, now im sure im wrong No, I was just wrong, I mean -$10) Thanks casmira

 

[Casmira]

she has 2/500 tickets ... .'.

(2/500 x 1000) + (498/500 x -10)

i think D:

 

[Casmira]

2/500 * $1000 + 498/500 * -$5

= -$0.98 I think, I hope

WAit, now im sure im wrong

she has 2 tickets that cost $5 each you're not stupid just slow down when reading

 

[Muzzaw]

I'll do it again.

Financial expectation = (2/500) x 1000 + (1/499) x 1000 - 2 x 5
= -$3.99

 

[Digital_Spork]

its ok, I just redid it

Not reading properly = my downfall in math. This exam im taking a highlighter in

 

[freakinout]

lol well thats three diferent answers.... im so confused!!!!

maybe we could try with another similliar question that we KNOW the answer to lol... any one got any???

 

[_muse_]

just out of curiousity.. why is it 498/500? cause i was writing 2/500 for the thing.. (we were never taught this stuff in class)... and -$10? where did that come from?

 

[Muzzaw]

What's the answer in the book?

 

[Digital_Spork]

blahhh, the -10 comes from 2*5 for buying the ticket, and I think the 498/500 is the chance she has of losing

 

[Casmira]

I'll do it again.

Financial expectation = (2/500) x 1000 + (1/499) x 1000 - 2 x 5
= -$3.99

what about the probability of her loosing $10? its more htan just 1/499, only has 2/500 tickets so incontrast 498/500

just out of curiousity.. why is it 498/500? cause i was writing 2/500 for the thing.. (we were never taught this stuff in class)... and -$10? where did that come from?

in the question they bought 2 tickets, each ticket is $5 so for 2 tickets its $10, alot of questions add this description to rule out people who dont read questions carefully, evidently it works, dont let them beat you and just read it carefully! its not like you dont know the work

 

[freakinout]

I'll do it again.

Financial expectation = (2/500) x 1000 + (1/499) x 1000 - 2 x 5
= -$3.99

wait why did u do the (1/499) x 1000 ??
maybe we should try another question!?

 

[Muzzaw]

That last one I did was done for two prizes of $1000, didn't read the question properly.

I think it's -$5.96.

 

[Digital_Spork]

well what is the answer your book says...

2/500 * $1000 + 498/500 * -$10

= -$5.96

 

[freakinout]

yep ppl $5.96 is correct!!! thatnx alot for ur help.... u ppl are smart and have nothin to worry about!

 

[Casmira]

make sure to do brackets like i did, some calculators are cocked

 

[_muse_]

ok bare with me for a second..
in this question..just tell me if i did this right

Amy buys a $1 ticket in a raffle. There are 200 tickets in the raffle and two prizes. First prize is $100 and second prize is $50. Find Amy's financial expectation

ok.. so i did

(199/200 * -$1) + (1/200 * $100) + (1/199 * $50)

= -$0.25

am i right?

 

[Casmira]

yep those are the little bit harder questions, she only has one ticket and if first plus is won then her ticket is still valid and there is still another 199 to pick from

 

[H.S.What?]

stop making it so confusing. the price he paid for the ticket doesnt come into the equation. its (2/500) x 1000 = $4. His financial expectation is $4, which is not worth buying a ticket for, since the tickets are $5 each. Financial probablilty is worked out by multiplying the possible financial outcome by its probability.