need some more help on stats

in a raffle 1000 tickets are sold for $2 each one ticket will be randomly selected and the winner will receive a laptop computer valued at $1200 what is the expected value for a person that buys one ticket?

Question

need some more help on stats

in a raffle 1000 tickets are sold for $2 each one ticket will be randomly selected and the winner will receive a laptop computer valued at $1200 what is the expected value for a person that buys one ticket?

anonymous · Answer

answer choices are 

a 1.2
b -.08
c 0.8
d -1.2
e none of the above

anonymous · Answer

@ganeshie8 @jim_thompson5910 @pooja195

jim_thompson5910 · Answer

What is the probability of winning?

anonymous · Answer

1/1000

jim_thompson5910 · Answer

if you win, you basically earn $1200

but you spent $2 to get it, so in reality, your net earnings is 1200-2 = 1198

jim_thompson5910 · Answer

if you lose, your net earnings is -2 dollars

what is the probability of losing?

anonymous · Answer

999/1000

jim_thompson5910 · Answer

now you compute

(probability of winning)*(net earnings of winning)+(probability of losing)*(net earnings of losing)

anonymous · Answer

so would it be (999/1000 * -2) + (1/1000 * 1198)

jim_thompson5910 · Answer

yes

anonymous · Answer

okay im getting -.8

anonymous · Answer

which is right okay thank you very much

anonymous · Answer

i have another problem i having trouble with if your sticking around

mathmale · Answer

Please, would you post your next problem as a separate, new problem?  Thanks.