Question

In a raffle, one ticket will win a $390 prize, one ticket will win a $280 prize, and the rest will win nothing. There are 50 in the raffle. If you have a ticket, what is the expected payoff?

Answer 1

To calculate the expected payoff of the raffle we need to find the weighted average of the prize. To do this will sum all the available prizes and divide it by the number of tickets. We have:

`\text{ expected payoff}=(390+280)/(50)=13.4`

The expected payoff of the raffle is $13.4