Question

one thousand raffle tickets are sold for $5.00 each. One grand prize of $1000 and two consolation prizes of $100 each will be awarded. Jeremy purchases one ticket. Find his expected value

Answer 1

probability or expected value?

Answer 2

expected value

Answer 3

well, lets look at what we have.
he has a 1/1000 chance of winning the grand prize, and 2/1000, or 1/500 chance of winning the consolation

Answer 4

thanks

Answer 5

so is this all i need to put as my answer?

Answer 6

noooo

Answer 7

I think, his expected value is V=(1000*(1/1000)+(100*(1/500)
It's plus because he could get one OR the other.