SOLUTION: My teacher allow me to re-take my quiz and I still got this problem incorrect please show me ASAP!!!!!!!!!!!!!!! thank you T-aun 500 tickets for prizes are sold for $2 each.

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Question 200185: My teacher allow me to re-take my quiz and I still got this problem incorrect please show me ASAP!!!!!!!!!!!!!!! thank you T-aun

500 tickets for prizes are sold for $2 each. Five prizes will be awarded – one for $300, one for $200, and three for $50. Steven purchases one of the tickets.
a) Find the expected value
b) Find the fair price of the ticket.
Answer by scott8148(6628) About Me  (Show Source):
You can put this solution on YOUR website!
one chance in 500 for a $300 prize
expected return ___ (1/500) * $300 or $.60

one chance in 500 for a $200 prize
expected return ___ (1/500) * $200 or $.40

three chances in 500 for a $50 prize
expected return ___ (3/500) * $50 or $.30

expected value ___ .60 + .40 + .30 - 2.00 = -.70

fair price for ticket ___ .60 + .40 + .30 = $1.30