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Find the probability of a prize

  1. Nov 23, 2015 #1
    1. The problem statement, all variables and given/known data
    The state of Oregon wishes to design a new lottery game with the following rules:  1.Each ticket costs $5  2.There will be three prizes: $10, $100 and $1000  3.The probability of the $10 prize will be 20%.  4.The probability of the $100 prize will be 1%  5.Ten thousand tickets will be sold each month.

    What should the probability for the $1000 prize be set at, if the state would like, on average, to earn $10,000 each month?

    2. Relevant equations


    3. The attempt at a solution

    $10000 is the average profit of a month, total income of a month is $50000, total prize of a month is 10*0.2*10000+100*0.01*10000= $30000, this isn't include the 1000 prize

    so: 10000=50000-30000-1000*x*10000, x=0.001

    can someone check this right or not? Thanks
     
  2. jcsd
  3. Nov 24, 2015 #2

    Orodruin

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    Yes, it is correct.
     
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