Question

A school fundraiser sells 1,200 raffle tickets. Each ticket costs $2. There is one grand prize worth $100 and 5 smaller prizes worth $20 each. What is the expected gain or loss for buying 1 ticket? loss of $1.91 loss of $1.83 gain of $2.16 loss of $1.99

Answer 1

loss of 1.83

Explanation:

iready test

Answer 2

loss of $1.83

Explanation:

The average prize per ticket is ...

($100 +5($20))/1200 = $200/1200 ≈ $0.1667 ≈ $.17

You pay $2.00 for a ticket, so your expected value is ...

-$2.00 +0.17 = -$1.83 . . . . a loss of $1.83