740539-9.

1-13P AID: 4446 | 26/6/2020

Consider the total numbers of tickets sold is 9000. Cost of each raffle ticket is $3. Prize of
a single ticket is $7000.

Discrete Random Variable

A random variable is a variable which express the values depending on the outcomes of a
random process. These variables are usually denoted by capital letters such as X, Y, Z and
the values which they express are usually denoted by small letters such as x, y, z.

Distribution of a Random Variable

The expression for probabilities of the values occupied by a random variable is called
distribution of a random variable. If a random variable X has value x, then the collection
of probabilities over each value x of X is called distribution of a random variable X.

 f  x  1
If f(x) denotes the probability of x, then x .

Expected value or mean of a random variable X

If f(x) denote the probability of x (value of random variable X), then mean  or expected
value of random variable X is defined as:

  X   E  X    xf  x 
x

Measures of dispersion
Two measures of dispersion, Variance X and standard deviation  of random variable X
are defined as:

Var(X )  E  x   
2

Var(X )    x    f  x 
2

Var(X )   x 2 f  x    2
x

Var(X )  E  X    E  X  
2 2

  X   Var X

a) The objective is to find the expected gain for a single ticket.

1
The probability of winning prize on single ticket is 9000 .

When the purchaser wins prize, then gain is 7000  3  6997 .

When the purchaser not wins prize, then gain is negative is as 3

Thus, random variable X has values 6997 and

 3  .

One can assume f as the probability function for X, then probability of winning a prize is
shown below:

1
f  6997   P  X  6997  
9000
1
f  3  P  X  3  1 
9000
8999
f  3  P  X  3 
9000

Expected gain for the purchaser of a single ticket is given as:

  X   E  X    xf  x 
x

E  X  =6997f  6997    3 f  3 

1 8999
E  X  =6997   3
9000 9000
6997  26997
E X  =
9000
20
E X  =
9
20

Hence, expected gain for the purchaser of a single ticket in dollars is as 9 .

b) The objective is to find the expected gain for two tickets.

1
The probability of winning prize on single ticket is as 9000 .

When the purchaser wins prize, then gain is as 7000  3  2  6994

When the purchaser not wins prize, then gain is negative is as
 6 

Thus, random variable X has values 6994 and

 6  .

One can assume f as the probability function for X, then probability of winning a prize is
shown below:

1 8999 8999 1
f  6994   P  X  6994     
9000 9000 9000 9000
8999
f  6994   P  X  6994   2 
9000  9000
 1  1 
f  6   P  X  6   1   1  
 9000  9000 
2
 8999 
f  6   P  X  6    
 9000 

Expected gain for the purchaser of two tickets is given as:

  X   E  X    xf  x 
x

E  X  =6994f  6994    6  f  6 
2
8999  8999 
E  X  =6994  2   6 
9000  9000  9000 
125878012  485892006
E X  =
9000  9000
E  X  =  4.4446

Hence, expected gain for the purchaser of two tickets in dollars is as 4.4446 .