1.) A raffle has a grand prize of a European cruise valued at $11500 with a second prize of a Rocky Point vacation valued at$1100. If each ticket costs $2 and 10000 tickets are sold, what are the expected winnings far a ticket buyer? Express to at least three decimal place accuracy in dollar form (as opposed to cents). 2.) Consider the following game of chance based on the spinner below: Each spin costs$2. If the spinner lands on A the player wins \$8, if the spinner stops on B the player wins a penny otherwise the player wins nothing. Calculate the players expected winnings. Express your answer to at least three decimal places in dollar form.
2. By Laplace, the probability that you choose a specific ticket is: $\frac{1}{n}$ with n being the total number of tickets. The expected value is therefore
$\frac{1}{n} \sum_{k=1}^n x_k$ where $x_k$ is your payoff for a specific scenario. Thus, $x_k = 0$ for all scenarios but the first and second price. Your expected winnings are these expected payoffs minus the price per ticket of 2 dollars. Your result will, however only have two decimal digits (that differ from zero).