Question 946547
Look at the number of chances to lose, 1999, and the number of chances to win, 1.
{{{E=(-1)*(1999/2000)+500(1/2000)}}}
{{{E=-0.7495}}}
No, if it was fair the expected value would be $0.
For every dollar you put in, you can expect to lose 75 cents. 
Not fair at all.