Question

In a raffle, one ticket will win a $930 prize, and the other tickets will win nothing. There are 500 in the raffle, each costing $6. If you buy a ticket, what is the expected profit?

Answer 1

`\begin{gathered} Step\text{ 1} \\ P\text{robabili}ty\text{ of wining = }(1)/(500) \\ P\text{robability of not wining is = }(499)/(500) \\ \text{Expecting Value = }(1)/(500)(930)\text{ + }(499)/(500)(-6) \\ \text{ = }(930)/(500)\text{ - }(2994)/(500) \\ \text{ =1.}86\text{ -5.988} \\ \text{ = -4.128} \\ \text{From the answer it means you are expepcted to loss} \end{gathered}`