Question 1172444
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Tutor @ikleyn has provided a response showing how to find the expected value using the formal definition of expected value.<br>
You of course should know the formal definition, and how to calculate the expected value using that definition.<br>
But for many simple expected value problems like this, the answer can be found in a less formal manner.<br>
In this problem, the total cost of the 1000 tickets is $2000, and the total prize payout is $3500.  So the payout is $1500 more than the cost of the tickets.<br>
The expected value for one ticket is that $1500, divided by the number of tickets:<br>
$1500/1000 = $1.50<br>
ANSWER: The expected value of one ticket is $1.50.<br>