Answer:
Step-by-step explanation:
Given that a charity is holding a raffle to raise money.
Car is the gift offered and the car is worth 30000
Tickets sold = 5000
Out of 500 tickets one ticket would fetch the car worth 30000 dollars
and five gift cards will bring 100 dollars
Thus we have Total
Tickets 1 5 4994 5000
Gain 30000 100 0
Cost 20 20 20
Net gain 29980 80 -20
Prob 1/5000 5/5000 4994/5000
Expected value for a ticket = [tex]29980(1/5000)+80*5(5/5000)-20(4994/5000[/tex]
=5.996+0.4-19.976
=-13.58
i.e. expected gain by participation=expectedvalue of ticket =-13.58
This negative indicates that the game is at the advantage of the charity conducting raffle and not for the participants
