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    mdrm0829's Avatar
    mdrm0829 Posts: 2, Reputation: 1
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    #1

    Apr 20, 2008, 07:10 PM
    Statistics (Expected Value)
    :confused: The prizes that can be won in a sweepstakes are listed below together with the chances of winning each one. $3,500 (1 chance in 8,800); $2,900 (1 chance in 7,000); $600 (1 chance in 4,700); $200 (1 chance in 2,300). Find the expected value of amount won for one entry if the cost entering is 58 cents.
    ISneezeFunny's Avatar
    ISneezeFunny Posts: 4,175, Reputation: 821
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    #2

    Apr 20, 2008, 07:43 PM
    expected value in this case is technically the sum of (prize)(probability)

    (3500)(1/8800) + (2900)(1/7000) + (600)(1/4700) + (200)(1/2300) =

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