Economics (Probability

Question

If a salesperson has gross sales of over​ $600,000 in a​ year, then he or she is eligible to play the​ company's bonus​ game: A black box contains 3 ​one-dollar bills, 1​ five-dollar bill and 1​ twenty-dollar bill. Bills are drawn out of the box one at a time without replacement until a​ twenty-dollar bill is drawn. Then the game stops. The​ salesperson's bonus is​ 1,000 times the value of the bills drawn. Complete parts​ (A) through​ (C) below.

A) What is the probability of winning a ​$27​,000 bonus​?

B) What is the probability of winning the maximum bonus by drawing out all the bills from the box?

C) What is the probability of the game stopping at the second draw?

Answer 1

b) P = pby ($20 bill is chosen last) = 1/5

c) P = pby ($20 bill is chosen second) = (4/5)(1/4) = 1/5

a) This one is more difficult but I think the answer is:

P = pby (first 3 chosen are 2 $1 bills and a $5 bill) x pby ($20 bill is chosen 4th)

P = (4/5)(3/4)(2/3)(1/2)= 1/5