Question

There is a raffle of a $800 prize. Out of 1000 tickets, one ticket will win the prize, and the remaining tickets will win nothing. If you have a ticket, what is the expected payoff?$0.55$0.65$0.80$0.70

Answer 1

Okay, here we have this:

Considering the provided information, we obtain the following expression:

Expected payoff=800/100

Expected payoff=4/5

Expected payoff=80%

Expected payoff=$0.80.

Finally we obtain that the expected payoff is $0.80.