The epectation that a person buys 4 tickets is: -$1.984
How to find the expected value?
A value that can be considered an average value or the value around which the different outcomes can be expected. It is used to have an approximate idea of what the next outcome can be.
We are given that;
Offers for the lottery:
$1000 prize = 1
$50 price = 3
Now, 1000 tickets are sold at $2 each.
Thus;
P(4 nos of $1000) = 4/1000 = 0.004
P(12 nos of $50) = 12/996 = 0.012
Total = 0.004 + 0.012
Total = $0.016
Expectation that a person buys 4 tickets = $0.016 - $2 = $1.984