You purchase a raffle ticket to help out a charity. The raffle ticket costs $5. The charity is selling 2000 tickets. One of them will be drawn and the person holding the ticket will be given a prize worth $4000. Compute the expected value for this raffle.

Answers

Answer 1
Answer:

Answer:

-$3

Explanation:

Data provided in the question:

Cost of raffle ticket = $5

Number of tickets sold = 2000

Probability of winning = 1 ÷ 2000 = 0.0005

Winning prize = $4,000

Now,

The expected value of prize =  Probability of winning × Winning prize

= 0.0005 × $4,000

= $2

Therefore,

The expected value for this raffle

= expected value prize - Cost of raffle ticket

= $2 - $5

= -$3


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Mixed Costs and Cost Formula Ben Palman owns an art gallery. He accepts paintings and sculpture on consignment and then receives 20% of the price of each piece as his fee. Space is limited, and there are costs involved, so Ben is careful about accepting artists. When he does accept one, he arranges for an opening show (usually for 3 hours on a weekend night) and sends out invitations to his customer list. At the opening, he serves wine, soft drinks, and appetizers to create a comfortable environment for prospective customers to view the new works and to chat with the artist. On average, each opening costs $600. Ben has given as many as 20 opening shows in a year. The total cost of running the gallery, including rent, furniture and fixtures, utilities, and a part-time assistant, amounts to $120,000 per year.Required:1. Assume that the cost driver is number of opening shows. Develop the cost formula for the gallery's costs for a year.2. Using the cost formula developed above, what is the total cost for Ben in a year with 12 opening shows?$Using the cost formula developed above, what is the total cost for Ben in a year with 14 opening shows?$
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A small office building produces NOI of $8,995 per year. We intend to buy the property, if the price is right, and hold it for four years. At that time (EOY 4) we believe we can sell the property for $197,000. If we require an 8% ROA, what is the most we should pay now for this investment?A. The NPV is negative, so reject the investment.B. The NPV is positive, so invest.C. The NPV is greater than the NOI, so invest.D. The GPI is greater than the NOI, so invest.E. The NPV is greater than the OPX, so invest.

Jamison Company had sales revenue and operating expenses of $5,000,000 and $4,200,000, respectively, for the year just ended. If invested capital amounted to $6,000,000, the firm's ROI was:_________ A. 13.33%.
B. 83.33%.
C. 120.00%.
D. 750.00%.

Answers

Answer:

A,. 13.33%.

Explanation:

Return on Investment (ROI) which gives the efficiency of a particular investment

We were given invested capital amounted as $6,000,000, and operating expenses as $5,000,000

We can calculate net income by substracing equal sales revenue from operating expenses

net income can be calculated as = ($5000000-$420000)

= $800000

ROI can be calculated as

net income/Capital investment

$800000/$6000000

=. 13.33%.

On June 10, Marin Company purchased $8,400 of merchandise from Cullumber Company, on account, terms 3/10, n/30. Marin pays the freight costs of $380 on June 11. Goods totaling $500 are returned to Cullumber for credit on June 12. On June 19, Marin Company pays Cullumber Company in full, less the purchase discount. Both companies use a perpetual inventory system.Prepare separate entries for each transaction on the books of Cullumber Company

Answers

Answer:

                                                       Debit            Credit

June 10   Accounts Receivables        $8400

               Merchandise                                        $8400

June 12    Merchandise                     $500

               Accounts Receivables                             $500

June 19    Cash                                  7663

               Discount                             237

               Accounts Receivables                            $7900

Explanation:

Final answer:

The transactions in Cullumber's books include sales revenue, accounts receivable, sales returns and allowances, and finally a cash entry alongside sales discounts when Marin pays the balance due.

Explanation:

The transactions on the books of Cullumber Company would be recorded as follows:

  1. On June 10, Marin Company purchases $8,400 worth of goods. In the books of Cullumber, this would be recorded as: Accounts Receivable - Marin Company $8,400andSales Revenue $8,400
  2. On June 11, Marin pays freight costs of $380. This has no effect on the entries in the books of Cullumber Company.
  3. On June 12, Goods totaling $500 are returned by Marin. This would be recorded as: Sales Returns and Allowances $500 and Accounts Receivable - Marin Company $500
  4. On June 19, Marin pays off the balance less the purchase discount. The payment can be recorded as: Cash $7,621, Sales Discounts $279 and Accounts Receivable – Marin Company $7,900. The sales discount is (3% of $8400-$500) = $279.

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10. The act of assigning formal authority and responsibility for a completion of specifi activities to a subordinate. A/ Allocation B/ Delegation C/ Subordinate D/ All​

Answers

The answer is B/ Delegation.

The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. How many rosebushes would she have to produce and sell in order to break even

Answers

Answer:

Break-even point in units= 2,000

Explanation:

Giving the following information:

Fixed costs= $6,000

Selling price= $6 each

Unitary variable cost= $3

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 6,000 / 3

Break-even point in units= 2,000

Which of the following will improve your bargaining position with customers a. ​The product your team produces has become more costly to produce b. ​There are fewer close substitutes for the product your team supports c. ​New firms have entered the market with competing products for the ones your team produces d. ​Your competitors have developed new products that contain more of the features that your team produces

Answers

"There are fewer close substitutes for the product your team supports"  will improve your bargaining position with customers.

Option: B

Explanation:

Bargaining is the procedure which is preferred by citizens not only with street shops but it is famous internationally too, where defense, economic trade deal, etc are signed between two different nations to corporate and shake hand of unity. Bargaining is more effective when one allow seller to know that the party itself have more substitutes if the product is not provided by the seller in appropriate rate.

For an instance, if India need to buy some rolling defense helicopters for nation from Russia but prices are high and United States is providing same material with lower price or may be with better rewards on buying from them.

Suppose the economy only produces three goods: bread, laptops, and movies. Calculate the CPI of 2008, using 2004 as the base year.

Answers

Answer:

Most of the question is missing, so I looked for a similar one and found the attached image.

CPI = (current year price × base year quantity) / (base year price × Base year quantity)

CPI for bread in current year = [($1.50 × 2,000) / ($1 × 2,000)] x 100 = 150

CPI for laptops in current year = [($1,500 × 100) / ($2,000 × 100)] x 100 = 75

CPI for movies in current year = [($7 × 50) / ($5 × 50)] x 100 = 140

CPI for current year = (CPI for bread x weight of bread) + (CPI of laptops x weight of laptops) + (CPI of movies x weight of movies) = (150 x $2,250/$227,530) + (75 x$225,000/$227,530) + (140 x $280/$227,530) = 1.48 + 74.17 + 0.17 =75.82

Final answer:

To calculate the CPI in 2008 using 2004 as the base year, compare the prices of the three goods (bread, laptops, and movies) in 2008 to their prices in 2004. Multiply the price of each good by the quantity consumed to calculate the cost of the basket in each year. Divide the cost of the basket in 2008 by the cost of the basket in 2004 and multiply by 100 to get the CPI.

Explanation:

The CPI (Consumer Price Index) measures the change in the prices of a fixed basket of goods and services over time. To calculate the CPI in 2008 using 2004 as the base year, you need to compare the prices of the three goods (bread, laptops, and movies) in 2008 to their prices in 2004. Here's how you can calculate the CPI:

  1. Determine the price of each good in 2008 and 2004.
  2. Calculate the cost of the basket in 2008 by multiplying the price of each good by the quantity consumed.
  3. Calculate the cost of the basket in 2004 by multiplying the price of each good by the quantity consumed.
  4. Divide the cost of the basket in 2008 by the cost of the basket in 2004 and multiply by 100 to get the CPI.

For example, if the cost of the basket in 2008 is $100 and the cost of the basket in 2004 is $80, the CPI would be (100/80) * 100 = 125.

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