Question 180887
you have 7 chances to win a total of 850
-2 * (1000-7)/1000=-993/500
850/7 * 7/1000=17/20
17/20 - 993/500=-142/125 or -$1.136 EV Since the EV is negative you will lose $1.136 for every $2 ticket you buy.
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Fair price of a ticket = 850/1000=$.85
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Ed