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A club raises money by conducting a 50-50 drawing. Each person that participates purchases a ticket for $ 2. The winner of the drawing will
A club raises money by conducting a 50-50 drawing. Each person that participates purchases a ticket for $ 2. The winner of the drawing will be paid 50% of the funds collected, and the other 50% going to the club treasury. There are 21 people participating. From the ticket sales, the funds collected = $ _____ Suppose you are one of the participants. Your probability of winning is P_1 = _____ Your probability of losing is P_2 = _____If you win, you collect x_1 = _____and if you lose, you collect x_2 = _____Your expected payoff is E(x) = ________ Your initial investment is expected to change by a factor of R^bar = ______ and the expected rate of return on your investment is r^bar = ______
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