Respuesta :
Answer:
the price of the ticket should be $0.35/ticket
Explanation:
since each ticket in a lottery are equally likely to be chosen, we define the random variable P= gains from the lottery .Then the expected gain is :
E(P) = probability of getting the $5 prize * $5/ticket + probability of getting the $25 prize * $25/ticket + probability of getting the $100 prize * $100/ticket = 250/10000 * $5/ticket + 50/10000 * $25/ticket + 10/10000 * $100/ticket = $0.35/ticket
then if all lottery tickets have the same prize ( the lottery tickets are not segmented according to the prizes, where more expensive ticket is associated with the highest prize), then in order to break even the cost of the ticket should be the same that the revenue we get from it , thus
Cost of the ticket = revenue of the ticket = $0.35/ticket
The fair price to charge to break even is 0.35.
- The calculation is as follows:
5 250 ÷ 10,000 = 0.0125 0.125
25 50 ÷ 10,000 = 0.005 0.125
100 10 ÷ 10,000 = 0.001 0.1
Price 0.35
Therefore we can conclude that The fair price to charge to break even is 0.35.
Learn more: brainly.com/question/6201432
