Question

Ten thousand raffle tickets are sold for $1 each. One first prize of $2000, 4 second prizes of $700 each, and 8 third prizes of $300 each are to be awarded, with all winners selected randomly. If you purchase one ticket, what are your expected winnings? 132 cents -$0.28 72 cents -$0.88

Answer 1

72 cents.

Explanation:

The expected winnings is the amount times the probability that you will get that amount.

2,000 * (1/10,000) = 2,000 / 10,000 = 2 / 10 = 0.2.

700 * (4 / 10,000) = 2,800 / 10,000 = 28 / 100 = 0.28.

300 * (8 / 10,000) = 2,400 / 10,000 = 24 / 100 = 0.24.

0.2 + 0.28 + 0.24 = 0.72.

Hope this helps!