Question

400 raffle tickets are to be sold for $2.00 each. there will be one prize of $200 awarded, and 2 prizes of $50.00. calculate the expected value for this game. If the game is not fair calculate a ticket price to make it fair.

Answer 1

400 * 2 = 800 - 200 = 600 - 100 = 500
$500 is the expected value
To make it fair the ticket price should be $300 / 400 = $0.75