Question

There is a raffle with 250 tickets. One ticket will win a $320 prize, one ticket will win a $240 prize, one ticket will win a $180 prize, one ticket will win a $100 prize, and the remaining tickets will win nothing. If you have a ticket, what is the expected payoff

Answer 1

Given that: There is a raffle with 250 tickets. One ticket will win a $320 prize, one ticket will win a $240 prize, one ticket will win a $180 prize, one ticket will win a $100 prize, and the remaining tickets will win nothing.

The expected payoff will be:

`\begin{gathered} EV=(1)/(250)(320)+(1)/(250)(240)+(1)/(250)(180)+(1)/(250)(100)+(246)/(250)(0) \\ EV=(320+240+180+100)/(250) \\ EV=(840)/(250) \\ EV=3.36 \end{gathered}`

So the expected payoff will be $3.36.