Question

A raffle has 250 tickets. One ticket will win a $300 prize, one ticket will win a $190 prize, and one ticket will win a $160 prize. The remaining tickets will win nothing. If you have a ticket, what is the expected payoff?

Answer 1

The expected value is the sum of the product of the probabilities of each outcome and the outcomes

The expected payoff

`\Sigma xP(x)=1.2+0.76+0.64+0=\text{ \$2.6}`