Question 40937
Hello!
The formula for the expected value would be:

Expected Value = (Probability of Winning)*(Prize if won) + (Probability of not winning)*(Prize if not won)

The price you get if you don't win is 0, so we can ignore the 2nd term. Now, the probability of winning is 1/1000, because you bought 1 ticket out of 1000. Since the prize is $500:

Exp. Value = (1/1000)*500 = $0.50


I hope this helps!
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