Question

In a raffle where 8000 tickets are sold for $2 each, one prize of $4200 will be awarded. What is the expected value of a single ticket in the raffle?

Answer 1

It is given that 8000 tickets are sold for $2 each, one prize of $4200 will be awarded.

The expected value is determined as

`(1)/(8000*4198)+(7999)/(8000*-2)`
`(1)/(8000*4198)-(7999)/(8000*2)=(1)/(8000)((2-33,579,802)/(4198*2))`
`(1)/(8000)((-3183600)/(796))=(-3183600)/(6368000)=-0.499`

The expected value of a single ticket in the raffle is -0.499 dollar.