SOLUTION: Don’t even know if this is the right category...
what is the expected value of a raffle ticket purchased for $4 if 1000 tickets are sold, the grand prize is valued at $750, an
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-> SOLUTION: Don’t even know if this is the right category...
what is the expected value of a raffle ticket purchased for $4 if 1000 tickets are sold, the grand prize is valued at $750, an
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Question 1158979: Don’t even know if this is the right category...
what is the expected value of a raffle ticket purchased for $4 if 1000 tickets are sold, the grand prize is valued at $750, and there are five second place prizes each valued at $250? Answer by ikleyn(52805) (Show Source):
Probability to win $750 is .
Probability to win either of five prizes at $250 is .
Hence, the money expectation to win is = .
From it, you should subtract $4 which you pay for the ticket, and then you get expected value of the game
= - $2.00.
It is EXTREMELY unfair game.
Statistically, you lose $2.00 in each game.
