Question

THE RAFFLE QUEEN

1000 raffle tickets are sold for $3.00 each.
There is one grand prize for $750 and two
consolation prizes of $200 each. What is the
expected value of one ticket?
ST
co
W

Answer 1

$1.15

Explanation:

750 + 400 = 1,150

1/1000 * 1,150 = 1,150/1000 = $1.15 expected value of one ticket.

Since he paid more than $1.15 for the ticket he has a bad bet.