A charity holds a raffle in which each ticket is sold for $30. ?

A total of 9400 tickets are sold. They raffle one grand prize which is a BMW M3 valued at $65000 along with 4 second prizes of DuWhat are the expected winnings for a single ticket buyer? Ducati motorcycles valued at $11000 each. 

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  • 4 weeks ago

    Total prize value:

    1 * $65,000

    4 * $11,000

    -------------

    = $109,000

    Total amount spent on the tickets:

    9400 * $30

    = $282,000

    The prizes minus the raffle ticket cost results in a negative amount for the player:

    109,000 - 282,000

    = -173,000

    Divide that over the 9400 tickets to find the expected *loss* for a single ticket buyer.

    -173,000 / 9400

    = -18.40

    Answer:

    The *loss* per ticket is $18.40

    (In other words, the expected prize value is $11.60 but they had to buy a $30 raffle ticket, so it's a loss of $18.40 for each ticket.)

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