Question

17. One thousand raffle tickets are sold for $4.00 each. One grand prize of $800 and two consolation prizes of $100 each will be awarded. Jeremy purchases one ticket. Find his expected value

Answer 1

we can use probability or just do it the simple ay

Answer 2

imagine he bought all 1000 tickets at $4 a piece. he spent $4000
he makes back $800 + 2 times $100 = $1,000 for a net loss of $3,000
averaged over the 1,000 tickets he loses $3 per ticket, so expected value (average loss ) is -3