Question

A charity raffle prize is $1,000. The charity sells 4,000 raffle tickets. One winner will be selected at random. At what ticket price would a ticket buyer expect to break even

Answer 1

0.25

Explanation:

Given that :

Charity raffle price = $1000

Amount of ticket sold = 4000

Only one winner is to be selected ;

Point ticket buyer is expected to break even :

Probability of winning = 1 / number of ticket sold = 1 / 4000 = 0.00025

P(winning) * raffle price = 0.00025 * 1000 = 0.25