Question

At a raffle, 1000 tickets are sold at $5 each. There are 20 prizes of $25, 5 prizes of $100, and 1 grand prize of $2000. Suppose you buy one ticket.

Let the random variable X represent your net gain (remember that the net gain should include the cost of the ticket) after playing the game once.

Answer 1

1000x5=5000

20x25=500
5x100=500
1x2000=2000

2000+500+500=3000

5000-3000=2000

net gain=x=2000