Answer:
The expected value of a ticket is of -$5.
Step-by-step explanation:
The expected value of the ticked is the probability of earning each prize multiplied by the prize, and subtracted by the value of the ticket.
Value of the ticket:
$10.
100 tickets are sold. They will award one first prize of $300, one second prize of $150, and one third prize of $50.
Thus, 1/100 probability of earning $300, 1/100 probability of 150 and 1/100 probability of 50. So
[tex]E = \frac{1}{100}300 + \frac{1}{100}150 + \frac{1}{100}{50} - 10 = 3 + 1.5 + 0.5 - 10 = -5[/tex]
The expected value of a ticket is of -$5.
