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Animal House Rescue is holding a fundraiser raffle. They sell 2,980 tickets for $1 each for a prize telescope valued at $425. What is the expected gain or loss to a participant purchasing ten tickets?

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Answer:

Gain: $415

Loss: $10

Explanation:

money earned - money spent = gain/loss

The gain is when the participant wins the telescope:

telescope = $425 ==> money earned

10 tickets * $1 = $10 for tickets ==> money spent

$425 - $10 = $415

Loss is when the participant doesn't get the telescope:

$0 ==> money earned (No money earned)

10 tickets * $1 = $10 for tickets ==> money spent

$0 - $10 = -$10 gained

-$10 gained ==> $10 lost

User Mehdi Maghrouni
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