Question

A math club is researching a golf tournament fund-raiser. It will cost $1,000 to host the tournament. If it rains, the club will lose the investment. If it is sunny, it is expected that the club will collect $4,500 from the participants. If the chance of rain is 20%, solve for the expected value for the tournament.

A.) –$800
B.) –$200
C.) $2600
D.) $3400

Answer 1

Explanation:

C on edge

Answer 2

Cost of hosting the tournament : $1,000
If it rains, the club will lose the investment: $ -1,000
If it is sunny, the club will collect $4,500 ; profit: 4,500 - 1000 = 3,500

chance of rain is 20%

-1,000 * 20% = -200
3,500 * 80% = 2,800

2,800 - 200 = 2,600 Choice C.