Question

One thousand raffle tickets are sold for $1.00 each. One grand prize of $200 and two consolation prizes of $50 each will be awarded. Jeremy purchases one ticket. Find his expected value. Show your work for full credit.

Answer 1

There are 1000 tickets of 1.00 $, so 1000*1.00 = 1000$ to be paid.
There are 2 gifts of 50$ and one of 200%, so 200+(50*2)= 300$ to be earned.

So Jeremy's ticket value is 1.00$ * (300$/1000$) = 0.30$

Answer 2

how do you calculate to get this answer

Answer 3

Value is supposed to be: [Money to be earned] divided by [Money spent]

Answer 4

It is as if Jeremy traded 1.00$ for 0.30$, not worth it :-p

Answer 5

ok got it thanks