Final answer:
The statement equating the expected value of a raffle ticket to the chance of winning is false. The expected value represents the average outcome over many iterations, not the probability of a single event. Option B is the correct answer.
Step-by-step explanation:
The statement 'if the expected value for a five-dollar raffle ticket is 0.85, then there is an 85% chance that the ticket will win' is false. The expected value of a raffle ticket is the average amount that a ticket is expected to win or lose. It doesn't represent the probability of winning; instead, it indicates the fair value or long-term average outcome of the ticket if the same raffle were to be played many times.
For example, if you have a raffle where most tickets win a small amount and a few win a large amount, the expected value can be positive, even if the chance of winning the big prize is very low. Conversely, if you have a raffle where there's a small chance to win a large prize, but most tickets win nothing, the expected value could be small or negative, despite a higher chance of winning something.
The correct option is b. False.