Question

The PTO is selling raffle tickets to raise money for classroom supplies. There is 1 winning ticket out of the 150 tickets sold. The winner gets a prize worth $200.

Round your answers to the nearest cent.

Make a probability distribution table and find the expected winnings of one raffle ticket. $?


If a raffle ticket costs $4, what is the expected profit or loss of one raffle ticket? (Enter a negative number for a loss) $?

Answer 1

Expected winnings = $1.33

Expected profit or loss = -$2.67

Explanation:

Winning Probability Prize Value

Yes 1/150 $200

No 149/150 $0

Expected winnings of one raffle ticket:

Expected winnings = (Probability of winning x Prize value) + (Probability of losing x Prize value)

Expected winnings = (1/150 x $200) + (149/150 x $0)

Expected winnings = $1.33

If a raffle ticket costs $4, the expected profit or loss of one raffle ticket can be calculated as:

Expected profit or loss = Expected winnings - Cost of ticket

Expected profit or loss = $1.33 - $4

Expected profit or loss = -$2.67