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BartSMP
2 months ago
14

In the BIG BUCKS LOTTERY, the chance of winning a $10 prize is 1%. What is your best guess about how many people would win a $10

prize if 1000 people each buy a single ticket to BIG BUCKS?
Business
2 answers:
Free_Kalibri [3.7K]2 months ago
5 0

Answer:

The answer is 10 individuals.

Explanation:

In the Big Bucks lottery with 1,000 participants, each buying a ticket costing $10, the likelihood of winning a $10 prize is 1%. To determine how many winners there would be, the calculations are as follows:

Total Participants = 1000

Winning Probability = 1%

Thus, the expected winners for the $10 prize would be calculated as follows: 1000 * 1%

= 1000 * 0.01

= 10 Individuals.

Therefore, it is expected that 10 winners will emerge from the 1,000 participants.

soldi70 [3.6K]2 months ago
4 0

Known Values:

C = 1%

n = 1000

Calculation:

Ef = C (a) x n

Ef = 0.01 x 1000

Ef = 10

From the calculation, out of 1000 individuals eligible for the $10 prize, only 10 individuals will win.

Additional Explanation

Understanding Opportunity

Opportunity refers to the method of assessing the likelihood of a certain outcome. In a scenario, uncertainty arises from actions which might yield various results.

Consider a coin toss; the result can either land on heads or tails, and neither outcome can be predicted with absolute certainty.

In the case of tossing a coin, one of two outcomes is likely — heads or tails. This act of tossing is random and can be repeated, with the sequence referred to as an experiment.

There are different approaches to calculating opportunity values, such as:

1. Expectation Frequency

2. Compounding Events

Expectation frequency is determined by multiplying the number of trials in an experiment by the chance of the event occurring. It assesses opportunities based on repeated experiments or tests.

Expectation Frequency Equation

Ef = C (a) x n

Definitions:

Ef = Expected Frequency

C = Probability

a = Event Symbol

n = Number of Trials

Further Insights

Opportunity values.

Details

Class: College

Subject: Business

Keyword: Opportunity value

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