The college student senate is sponsoring a spring break Caribbean cruise raffle.
ID: 3239730 • Letter: T
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 2170 raffle tickets at $5 per ticket.
(a) Kevin bought twenty-eight 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-eight tickets?
---Select--- less more
How much did Kevin effectively contriute to the Samaritan Center for the Homeless? (Round your answer to two decimal places.)
$
Explanation / Answer
a. Here total tickets sold are 2170, out of which Kevin got 28
So probability of Kevin winning is 28/2170=0.013
So probability of not winning is 1-0.013=0.987
b. Now cruise value is 2000 so expected value is 0.013*2000=26 which is less than what he spent.
He spent 28*5-26=140-26=114