Answer:
The answer is: expected value is -$0.88
Explanation:
Given is, the he bidding starts at 1¢ and goes up 1¢ at a time. A television that is worth $2000 is won, on average, with a bid of $160. So, $160 in 1¢ steps means 16000 bids.
Therefore, a person invest $1 with a 1/16000 probability of a $2000 return.
Noe, the expected value will be =

= -1+0.125 = -0.875 ≈ -$0.88
Hence, the answer is -$0.88