Question 200185
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