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 1171104: 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(P Win)?

What is the expected value (to you) of one raffle ticket? $
Answer by CPhill(1959) About Me  (Show Source):
You can put this solution on YOUR website!
Let's break down this raffle problem step-by-step.
**1. Probability of Winning (P Win)**
* Total number of tickets sold = 2000
* Number of winning tickets = 1
* Probability of winning (P Win) = (Number of winning tickets) / (Total number of tickets)
* P Win = 1 / 2000 = 0.0005
**2. Expected Value**
The expected value is calculated as follows:
Expected Value = (Probability of Winning * Value of Prize) + (Probability of Losing * Cost of Ticket)
* Probability of Winning = 1 / 2000 = 0.0005
* Value of Prize = $75
* Probability of Losing = 1 - (1 / 2000) = 1999 / 2000 = 0.9995
* Cost of Ticket = $1
Expected Value = (0.0005 * $75) + (0.9995 * -$1)
Expected Value = $0.0375 - $0.9995
Expected Value = -$0.962
**Rounding to the Nearest Cent**
* Probability of winning: 0.0005 (no rounding needed)
* Expected Value: -$0.96
**Answers**
* Probability you win if you purchase one raffle ticket (P Win): 0.0005
* Expected value (to you) of one raffle ticket: -$0.96