Raffle Tickets Ten thousand raffle tickets are sold for $5
Chapter 12, Problem 12.1.204(choose chapter or problem)
Raffle Tickets Ten thousand raffle tickets are sold for $5 each. Four prizes will be awarded: one for $5000, one for $2500, and two for $1000. Assume that the probability that any given ticket is selected for the $5000 prize is \(\frac{1}{10,000}\), the probability that any given ticket is selected for the $2500 prize is \(\frac{1}{10,000}\), and the probability that any given ticket is selected for a $1000 prize is \(\frac{2}{10,000}\). Sidhardt purchases one of these tickets.
a) Determine his expected value.
b) Determine the fair price of a ticket.
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