Question

The college student senate is sponsoring a spring break Caribbean cruise raffle. The proceeds are to be donated to the Samaritan Center for the Homeless. A local travel agency donated the cruise, valued at $2000. The students sold 2782 raffle tickets at $5 per ticket.

(a) Kevin bought twenty tickets. What is the probability that Kevin will win the spring break cruise to the Caribbean? (Round your answer to five decimal places.)


What is the probability that Kevin will not win the cruise? (Round your answer to five decimal places.)


(b) Expected earnings can be found by multiplying the value of the cruise by the probability that Kevin will win. What are Kevin's expected earnings? (Round your answer to two decimal places.)
$  

Is this more or less than the amount Kevin paid for the twenty tickets?
---Select--- less more

How much did Kevin effectively contribute to the Samaritan Center for the Homeless? (Round your answer to two decimal places.)
$

Answer 1

Raffle tickets for a Caribbean cruise are sold for a fundraiser for $5 each. The winner fundriser will win a $2000 cruise. The club sold 2782 tickets.

(a)

Because the club sold 2782 tickets, each ticket has 1 chance in 2782 of winning. The probability of winning is 1/2782. Because Kevin bought 20, each with probability of winning of 1/2782, his probability of winning is 20/2782.

The probabiity that he will not win is ,

P(not winning) = 1 - 20/2782 = 1-0.00718 = 0.99281

(b)

We have to calculate Kevins expected winnings for this fundriser. The cruise is valued at $2000.

Expected earnings = (2000)(20/2782) = 14.38

His expected earnings on the 20 tickets is $14.38.

For the 20 tickets he bought, with a total expenditure of $100, and with an expected value of $14.38,

he effectively donated (100 - 14.38) = $85.62 to the homeless shelter.

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