Question

Please help! Correct answer only!

For a fundraiser, there is a raffle with 125 tickets. One ticket will win a $500 prize, and the rest will win nothing. If you have a ticket, what is the expected payoff?

$___

Answer 1

$4

Explanation:

Since for each of the 125 tickets there is an equal chance of winning the 500 dollars, for each ticket there is an expected payoff of 500/125=4 dollars. Hope this helps!