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Sagot :
If PTO the pto sells all 230 raffle tickets, money that can be raised is -$620
Define expected value.
The expected value is calculated in statistics and probability analysis by multiplying each conceivable outcome by the likelihood that each outcome will occur, then adding up all of those values. Investors can select the scenario most likely to provide the desired result by calculating anticipated values. The probability is multiplied by the value of each outcome to get the expected value.
As 230 tickets are sold, the probability of being a winner is = 1/230
The prize value is $70 or (1/230)×70
= 0.304
The cost of the ticket you paid = $3
Hence, the expected value of one ticket = 0.304 - 3
= -2.695 or rounding off we get -2.70
the expected value if you purchase 12 raffle tickets
= -2.70 × 12 = -9.3
If the PTO sells the 230 tickets, then the expected value is 230 times the expected value for a single ticket:
EV = 230 × -2.70 = -$621
We should have the exact same as selling the 230 tickets:
230 × 3 = $690
Minus the $70 price:
$690 - $70 = $620
There is a difference of $1, which happens because we rounded the value of the expected value (the actual one was $2.70)
To learn more about the calculation of expected value, visit:
https://brainly.com/question/23361629
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