SOLUTION: On a cruise ship, a raffle is offered at $1 a tick for a single $400 price. Each of the 500 passengers purchases only 1 ticket. What is the expected value of purchasing a raffle

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Question 1198130: On a cruise ship, a raffle is offered at $1 a tick for a single $400 price. Each of the 500 passengers purchases only 1 ticket. What is the expected value of purchasing a raffle ticket? Is it worth spending the money?
A) $.80 ,yes,you can expect a monetary gai.
B) $.20, yes, you can expect a monetary gain
C) -$.80, no, you can expect to loose money
D) -$.20, no, you can expect to loose money
Answer by ikleyn(52769) About Me  (Show Source):
You can put this solution on YOUR website!
.


The expected value of purchasing one ticket for a passenger is


    400%2F500 - 1 = 0.8 - 1 = -0.2 dollars.


The answer is option (D).

Solved.