Question 129354
One thousand raffle tickets are sold for a first prize $300. 
A second prize of $150. 
And a third prize of $50.00 dollars.
 
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Let your random variable be "x = gain"
Values of the random variable are:
300...................150................50.............-1.......
Corresponding probabilities are:
1/1000................1/1000.............1/1000.........999/1000

Expected "gain" value = (1/1000)(300+150+50)-(999/1000) = -499/1000= -49.9 cents
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What is a fair price to pay for a raffle ticket?
About 50 cents
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if Mary brought a raffle ticket for $1.00 dollar.
What can you conclude about the cost of entering this raffle?.
50 cents covers the cost of the prises; the rest benefits the orgainizer.
Mary can expect to lose 50 cents and every dollar she spends.
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Cheers,
Stan H.