A lottery has one $2000 prize, two $1000 prizes, and ten $500 prizes. Two thousand tickets are sold at $5 each. Find the expected value if a person buys two tickets.

Question

anonymous · Answer

we do it the snap way

anonymous · Answer

buy up all the tickets
spend $$5\times 2000=$10,000$ get back $\$2000+2\times \$1000+10\times\$500=$9000$
for a net loss of $$10,000-\$9000=\$1000$

anonymous · Answer

averages over the number of tickes we have lost 
$\frac{\$1000}{2000}=.50$ i.e. we lost 50 cents a ticket. two tickes expected loss is $1
ie expacted values is -1

anonymous · Answer

thank you ;))