Full Question Below! Probability

Question

When Timothy attends a charity event, he is given the opportunity to purchase a ticket for the $50 door prize. The cost of the ticket is $2, and 100 tickets will be sold. a) determine Timothy's expectation if he purchases one ticket. b) if he purchased two tickets.

Answer 1

a.  E(x) = (1/100)(48) + (99/100)(-2) because if his ticket wins his net income is $48 (he paid $2 to get ticket)

 

b.  E(x) = (2/100)(46) + 98/100)(-2)

 

Reasonable?