Calculate the expected value of the prize in a box of nu


Cracker Jack first appeared in 1893 at the Chicago World's Fair. Enormousl y popular ever since (250 million boxes are sold each year), the snack owes more t han a little of its success, especially wit h children, to lhe toy included in each box. When a new N ult y Deluxe flavor was introduced in the mid-1990s, that familiar marketing gimmick was raised to a new level. Placed in one box was a certificate redeemable for a $10,000 ring; in 50 other boxes were certificates for a Breakfast m Tiffany's video (a movie in which the leading character, Holly Golightly, finds her engagement ring in a Cracker Jack box); the usual toys and puzzles were put in all the other boxes (183). Calculate the expected value of the prize in a box of Nu tty Deluxe Cracker Jack. Assume tha t 5 million boxes were distribu ted during t ha t first year. Also, assume that each video was worth $30 and each other prize 1.2.

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Dissertation: Calculate the expected value of the prize in a box of nu
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