Question

200 lottery tickets are sold for $4 each. The person with the single winning ticket will get $74. What is the expected value for a ticket in this lottery? State your answer in terms of dollars rounded to the nearest cent (hundredth).

Answer 1

Since just 1 ticket pays $74 in return and the rest give $0 in return, the total return value for all 200 tickets is $74. Divide $74 by 200 to find the expected return value for a ticket:

`(74)/(200)=0.37`

Therefore, the expected return value for a ticket is $0.37.