Question

A charity is holding a raffle to raise money. There is one car worth $30,000 and five $100 gift cards being raffled off. Each ticket costs $20, and there are a total of 5,000 tickets being sold. Which equation correctly depicts the calculation of the expected value for a ticket?

Answer 1

The expected value for a ticket in the raffle is -$13.

Step-by-step explanation:

The equation that correctly depicts the calculation of the expected value for a ticket in the raffle is:

Expected Value = (Probability of winning the car) * Value of the car + (Probability of winning a gift card) * Value of the gift card - Cost of the ticket

Given that there is one car worth $30,000 and five $100 gift cards being raffled off, each ticket costs $20, and there are a total of 5,000 tickets being sold:

Expected Value = (1/5,000) * $30,000 + (5/5,000) * $100 - $20

Expected Value = $6 + $1 - $20

Expected Value = -$13

Therefore, the expected value for a ticket in the raffle is -$13. This means that, on average, a person can expect to lose $13 for every ticket they purchase.

Answer 2

the answer that starts with 29980 and includes -20