Suppose the auction house from the preceding problem sold 200 tickets at $1 each, and had 16 prizes of $10 each. What is the new expected value? A) $0 B) $0.2 C
Mathematics
harperno
Question
Suppose the auction house from the preceding problem sold 200 tickets at $1 each, and had 16 prizes of $10 each. What is the new expected value?
A) $0
B) $0.2
C) –$0.2
D) $0.8
A) $0
B) $0.2
C) –$0.2
D) $0.8
2 Answer

1. User Answers madera12
the answer is $0.8
200/160=1.25
200+160=360/1.25/160=200.8
so the answer is $0.8 
2. User Answers AlonsoDehner
Answer:
Option C
Stepbystep explanation:
Given that the auction house from the preceding problem sold 200 tickets at $1 each, and had 16 prizes of $10 each.
With prize Without prize Total
Tickets : 16 184 200
Prize 10 0
Price 1 1
Net prize 9 1
Price * tickets 144 184 40
Expected value = 40 dollars
For 200 tickets expected value = 40 dollars
Hence for 1 ticket ev = 40/200 = 0.20
Option c is right