Question

In a raffle, one ticket out of 50 will win a $190 prize, and one ticket will win a $60 prize. The remaining tickets will win nothing. If you have a ticket, what is the expected payoff?

Answer 1

The expected payoff is:

`E(X)=190\cdot(1)/(50)+60\cdot(1)/(50)+0\cdot(48)/(50)=5`

the expected payoff is 5