Tik Ed McMaster is selling tickets to a balloon ride. The ri…
Tik Ed McMaster is selling tickets to a balloon ride. The ride takes place at dawn on Sunday because the winds are most calm at that time of day. Demand for the ride is equally likely to be 1, 2, 3, 4, or 5 units. Tik buys the tickets for $10 each and resells them for $20 each. Unsold tickets have no value, and he can only place one order for this week. If Tik orders 3 tickets what is the expected number of unused tickets? In other words what is the expected value of the number of tickets that Tik buys that will go unused?