Question

At a carnival, there is a raffle with 250 tickets. One ticket will win a $260 prize, nine tickets will win a $30 prize, and the remaining tickets will win nothing. If you have a ticket, what is the expected payoff?

Answer 1

we get that the expected payoff is $2.12

`E(X)=260\cdot(1)/(250)+30\cdot(9)/(250)+0\cdot(240)/(250)=2.12`