Question 1076567
A 1 in 5 change of winning $2 is worth 40 cents. If you pay $1 for this, each play costs you 60 cents. i.e. you lose 60 cents per game average. 

Play 200 times, lose $120. 

To confirm, 200 games should win approx (bell curve for actual results) 40 times.
40 wins = $80 returned, or $120 loss. 

Note, this was from some time ago, but I just saw a note that the teacher says the loss is $80. 

On 200 plays, on average one in five wins or 40 wins. 40 wins is 40 x $2 = $80 returned. Therefore $120 lost. This is not difficult, we all (even teachers) make mistakes.