A Magazine Subscription Service Is Having a Contest in Which

question 19

Multiple Choice

A magazine subscription service is having a contest in which the prize is $80,000. If the company receives one million entries, what is the expectation of the contest?

• A) $0.12
• B) $0.11
• C) $0.08
• D) $0.10
• E) $0.09

Apply the principle of expected value in different contexts.

Understand and calculate conditional probabilities.

Interpret probability distributions for discrete random variables.

Apply probability models to real-world situational problems.

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Definitions:

Government Sets Prices

A practice where the government actively intervenes to control and set the prices of certain goods and services, often to stabilize the economy or protect consumers.

Consumers

Individuals or groups who purchase goods and services for personal use or consumption.

Society Interest

The collective welfare and interests pursued by a community or society, often reflecting common goals or concerns such as public safety, education, and economic prosperity.

Own Interest

Refers to the personal gain or benefit that individuals or organizations seek in various activities or decisions.