Mathematics

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

2 Answer

  • the answer is $0.8

    200/160=1.25
    200+160=360/1.25/160=200.8
    so the answer is $0.8
  • Answer:

    Option C

    Step-by-step 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

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