Question

Question 125 ptsA raffle sells 1000 tickets at $5 per ticket. The possible prizes are given below. Find the expectedvalue of each ticket (from the perspective of the person buying the ticket). Include signs in youranswer as appropriate.1 ticket wins $10005 tickets win $10010 tickets win $20

Answer 1

The answer is $0.5

Step-by-step explanation:

⇒ Total amount of tickets sold = 1000 x $5 = $5000

⇒ Expected value E(X) =∑X.P(x)

⇒ 1 x (1000/5000) + 5 x (100/5000) + 10 x (20/1000)

= 0.2 + 0.1 + 0.2

= $0.5