Project: Raffle

Objective: Calculate probabilities and odds for a fund raising raffle.
Many churches, social organizations and schools use raffles as fund raisers. Study the raffle described below. Tickets cost $100.00. There are only 40,000 tickets available.  The prize list describes the prizes for the purchase of a single ticket.

You Could be the Next Millionaire!

Buy a ticket in the Fall House of Dreams Charity Raffle for a chance to win a $1 Million Dream Home built anywhere in the U.S.A. or $1 Million cash! This is a chance to Change Your Life Forever. Enter the House of Dreams Raffle and win a house. Only 40,000 raffle tickets will be sold.

or $1,000,000 Cash!

or $35,000 CASH!

or $10,000 CASH!

or $15,000 CASH!

or $25,000 CASH!

ADDITIONAL PRIZES

60 Homedics Wireless Speakers and Ipod Deck

Cost:  $150.00 each

60 Jazz 12 Mp Video Camera

Cost:  $90.00 each

60 RCA Pocket Digital Camera

Cost:  $100.00 each

60 Vtech Cordless Phone with 4 Handsets

Cost:  $130.00 each


50 Samsung 4Gb Multimedia Player

Cost:  $80.00 each

50 Coby 8.4" Digital Frame

Cost:  $90.00 each

50 Casio Wave Ceptor Atomic Solar Powered Watch
His or Hers

Cost:  $110.00 each

      

50 Panasonic Fax and Answering Machine

Cost:  $120.00 each

Use the raffle information to answer the following questions.
1.  Make a probability distribution table for this raffle.  Use the prize money as the events.  
     Remember to subtract the price of the ticket from the events when determining the 
     random variables.  Write out all the decimal places.

2.  If all 40,000 tickets are sold, how much money will this charity make on their raffle?

3.  Using the prize money, not the random variable to define an event, find:
     A.  P(Winning the $1,000,000 Dream Home).

     B.  Odds against winning a Homedics Wireless Speakers and Ipod Deck.

     C.  Odds in favor of winning a Samsung 4Gb Multimedia Player.

     D.  P(Not Winning any prize).

     E.  Odds in favor of winning any prize.

     F.  P(Winning a prize worth at most $100).

    G.  P(Not winning a prize worth more than $100).
          Hint:  Losing is included.

    H.   Odds in favor of winning a prize worth less than $120. 

     I.  Odds against winning a prize at least $120.

     J.  P(Losing money on the Raffle)
           Hint:  Losing or winning a prize worth less than $100 is losing money.

4.  Find the expected value of this raffle.

5.  How is the expected value related to the profit the charity makes on this raffle?

 

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