SOLUTION: One thousand raffle tickets are sold for $2.00 each. One grand prize of $600 and two consolation prizes of $100 each will be awarded. Jeremy purchases one ticket. Find his expected

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Question 387671: One thousand raffle tickets are sold for $2.00 each. One grand prize of $600 and two consolation prizes of $100 each will be awarded. Jeremy purchases one ticket. Find his expected value.

Answer by rapaljer(4671) About Me  (Show Source):
You can put this solution on YOUR website!
The total value of the prizes to be won = $600 + 2*100= $800.

Since 1000 tickets were sold, the probability of winning on each ticket is 1/1000.

Therefore Expected Value = Probability * Prize = %281%2F1000%29+%2A+800+ = 800%2F1000+=+.8 or $0.80.

Somebody is making a LOT of money on this raffle!! I hope it's a good charity!!

Dr. Rapalje