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200 lottery tickets are sold for $3 each. The person with the single winning ticket will get $73. What is the expected value for a ticket in this lottery?

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Given:

a.) 200 lottery tickets are sold for $3 each.

b.) The person with the single winning ticket will get $73.

Imagine one person buys all the tickets.

This will cost 3 x 200 = $600 for a 100% certainty of winning $73.

Its value is 73/600 x 100 = 12.17%.

Thus, each ticket's value is $3 x 0.1217 = $0.3651 or approximately $0.37.

It means that each ticket has an expected value/return of $0.37 or approximately around 88% loss per $3 ticket.

Therefore, the answer is $0.37.

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