<PRE><B>Question 1209575</B>
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I don&#39;t know what to make of the statement that &quot;the player&#39;s ticket is replaced after each draw and that the same ticket can win more than one prize&quot;.  That seems unusual; and I&#39;m not sure it changes how to calculate the expected value.&lt;br&gt;
I will leave it to another tutor to show a solution using the formal definition of expected value.  A less formal common sense solution is much easier.&lt;br&gt;
The total cost of the tickets is 1000*($5) = $5000.&lt;br&gt;
The total payout is $900 + 2*($700) + 2*($400) + 5*($100) = $3600.&lt;br&gt;
Overall, the &quot;gain&quot; is $3600 - $5000 = -$1400.&lt;br&gt;
The expected value for each of the 1000 tickets is (-$1400)/1000 = -$1.40.&lt;br&gt;
The expected value for 3 tickets is 3*(-$1.40) = -$4.20.&lt;br&gt;
ANSWER: -$4.20&lt;br&gt;
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