SOLUTION: The student government is selling raffle tickets to raise money for a school activity. A raffle ticket costs $1. There is 1 winning ticket out of the 2000 tickets sold. The winner

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Question 1171103: The student government is selling raffle tickets to raise money for a school activity. A raffle ticket costs $1. There is 1 winning ticket out of the 2000 tickets sold. The winner gets a prize worth $75. Round your answers to the nearest cent.
What is the probability you win if you purchase one raffle ticket?

What is the expected value (to you) of one raffle ticket? $


Answer by htmentor(1343) About Me  (Show Source):
You can put this solution on YOUR website!
Since there is 1 winning ticket out of the 2000 tickets sold, the probability
of winning is 1/2000
The expected value, EV, is given by the probability of winning times the
payout minus the cost of the ticket times the probability of not
winning.
EV = (1/2000)$75 - (1999/2000)$1 = -$0.962