Question

Your youth group is selling 2000 raffle tickets for $10 each. There will be one winner of $2000 and 3 winners of $500. What is the expected payoff of each ticket

Answer 1

$8.25 payoff per ticket

Explanation:

2000 (tickets) x $10 = $20,000 they made selling them

$2000 + ($500 x 3) = $3500

$20,000 (money made) - $3500 (prize cost) = $16500

$16500 / 2000 = 8.25