Thread: The Net Earnings from a Raffle...

A raffle offers a first prize of $400 and three second prizes of $80 each. One ticket costs $2 and 500 tickets are sold. Find the expected net winnings for a person who buys two tickets at random.

I've determined the net winnings for a person who buys one ticket at random, but how do I determine the amount if they buy 2 tickets? Can I just multiply by 2?

Originally Posted by tuheetuhee

A raffle offers a first prize of $400 and three second prizes of $80 each. One ticket costs $2 and 500 tickets are sold. Find the expected net winnings for a person who buys two tickets at random.

I've determined the net winnings for a person who buys one ticket at random, but how do I determine the amount if they buy 2 tickets? Can I just multiply by 2?

Think about the following:

1. What's the probability of winning first prize only?

2. What's the probability of winning one second prize only?

3. What's the probability of winning two second prizes?

4. What's the probability of winning first prize and second prize?