Question

There is a raffle with 200 tickets. One ticket will win a $240 prize, three tickets will win a $90 prize, eight tickets will win a $50 prize, and the other tickets will win nothing. If you have a ticket, what is th expected payoff?

Answer 1

Teshawn, this is the solution:

As we had this same question before, the expected payoff is:

1/200 * 240 + 3/200 * 90 + 8/200 * 50 + 188/200 * 0

1.2 + 1.35 + 2 + 0

Therefore, the expected payoff for a raffle ticket is $ 4.55