1. One thousand tickets are sold for 50.00 each. One ticket will win 10,000.00, two tickets will win

5,000.00 each and three tickets will win 1,000.00 each. If X denotes the net gain from the purchase of a randomly selected ticket, which of the following tables of values shows the probability distribution of X?

2. You buy three 1,000.00 raffle tickets for a prize of a new 20- passenger Sarao jeepney valued at

800, 000.00. Two thousand tickets are sold. What is the probability of winning the prize in the

purchase of three tickets?

3. Aroulette wheel in an amusement park has the numbers 1 through 60. If you bet 100.00 you will have a chance to win a cellular phone worth 5,000.00. How much the organizer will earn if 100 games will be played?

A. 50,000.00 C. 150,000.00

B. 100, 000.00 D. 200,000.00

4. A life insurance company will sell a 1 million three-year term life insurance policy exclusive in a

particular risk group for a premium of 2,000.00. Find the expected value to the company of a single

policy if a person in this risk group has a 99.95% chance of surviving three years?

A. 1,500.00 C. 1,800.00

B. 1,690.00 D. 1,950.00

Game of Chance 5. (Raffle Tickets)

Two thousand tickets are sold for 20.00 each. One ticket will win 10,000.00, two tickets will win

5,000.00 each and three tickets will win 1,000.00 each. Let X denotes the net gain from the purchase

of a randomly selected ticket.

a. Construct the probability distribution of X.

b. Find the probability of winning any amount in the purchase of one ticket.

c. Find the expected value of X, then interpret