Question 1200362
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Tickets for a raffle cost $15. There were 758 tickets sold. 
One ticket will be randomly selected as the winner, and that person wins $1300. 
For someone who buys a ticket, what is the Expected Value (the mean of the distribution)?

If the Expected Value is negative, be sure to include the "-" sign with the answer. 
Express the answer rounded to two decimal places.

Expected Value = $ 

(PLEASE EXPLAIN) I do not understand, and it would be a lot if the steps were shown.
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<pre>
Formally, you need to calculate the probability of getting the winning ticket, first.

This probability is  {{{1/758}}},  since there are 758 tickets, in all, 
and only one is the winning.


Then you should multiply this probability by the winning amount of $1300

    {{{(1/758)*1300}}} = 1.715039578  dollars.


It is the mathematical expectation to win.


But they ask you about another value: about the expected NET value of the distribution.


To get this value, you should subtract $15 from 1.715039578, and you will get

    1.715039578 - 15 = -13.285 dollars (rounded).


It is your <U>ANSWER</U>.


        In other words, the machine spreads evenly the amount of $1300 among 758 tickets 
        and then you pay $15 from your pocket to this machine for its work.
        The change of the balance in your pocket after that operation is called "the net expectation".
</pre>

Hope now you do understand everything.


The sign "-" means that you lose money CATASTROPHICALLY in this game.


So, do not play this way . . . 



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It is why you should learn Math very insistently: 


&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- it teaches you how to live; what to do and HOW to do it; and what not to do.