Question

Tickets for a raffle cost $18 There were 727 tickets sold. One ticket will be randomly selected as the winner, and that person wins $1500 and also the person is given back the cost of the ticket. For someone who buys a ticket, what is the Expected Value (the mean of the distribution)?

Answer 1

Step 1

Given; Tickets for a raffle cost

$18 There were 727 tickets sold. One ticket will be randomly selected as the winner, and that person wins

$1500 and also the person is given back the cost of the ticket. For someone who buys a ticket, what is the Expected Value (the mean of the distribution)?

Step 2

`E=-18((726)/(727))+(1500+18)((1)/(727))`
`\begin{gathered} E=-(13068)/(727)+(1518)/(727) \\ E=(-11550)/(727) \\ E=-15.88720 \\ E\approx-15.89 \end{gathered}`

Answer;