Alocal flower shop is selling $1 raffle tickets and is donating all proceeds to the children's hospital. they sold 5,500 tickets and plan to give away 20 flower arrangements valued at $70 and 20 gift certificates valued at $25. find the expected value of purchasing a raffle ticket.

And that represent the expected value of purchasing a raffle ticket.

Step-by-step explanation:

In statistics and probability analysis, the expected value "is calculated by multiplying each of the possible outcomes by the likelihood each outcome will occur and then summing all of those values".

In order to calculate the expected value we can use the following formula:

We need to find the probability for each event. The probability of win a flower arrangement is 20/5500 and a gift crtificate is 20/5500 so then the probability of no win anything is (5500-20-20)/5500= 5460/5500

Then the random variable is given by:

X     |      70       |      25       |       -1            |

P(X) | 20/5500 | 20/5500 | 5460/5500 |

And thn if we replace we got:

And that represent the expected value of purchasing a raffle ticket.