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 50,000 tickets available.
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You Could be the Next Millionaire! |
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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 50,000 raffle tickets will be sold. |
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or $50,000 CASH! |
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or $25,000 CASH! |
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Harley Davidson Motorcycle |
or $15,000 CASH! |
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or $10,000 CASH! |
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Winner Selects $500 or One of the Following Prizes:
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Winner Selects $200 or One of the Following Prizes:
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Winner Selects $100 or One of the Following Prizes:
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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.
2. If all 50,000 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 the $1,000,000 Dream Home.
C. Odds in favor of winning $50,000 or a Mercedes-Benz or a Cadillac.
D. P(Not Winning something).
E. Odds in favor of winning any prize.
F. P(Winning a prize worth at most $500).
G. P(Winning a prize worth more than $500).
H. P(Not winning a prize worth less than $200)
I. Odds against winning a prize at least $200.
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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