Question

Out of 500 tickets in a raffle, one ticket will win a $360 prize, one ticket will win a $260 prize, and one ticket will win a $60 prize. The other tickets will win nothing. If you have a ticket, what is the expected payoff?

Answer 1

Answer: $0.56

Explanation:

Answer 2

Final answer

Expected payoff = 360 x 0.002 + 260 x 0.002 + 60 x 0.002

= 0.72 + 0.52 + 0.12

= 1.36