Question

two thousand ticketa are sold at a raffle for a chance to win a gaming computer system worth $1800. the tickets are sold for $2 each. if a person buys only one ticket what is the expected value for that ticket?round to the nearest cent if necessary

Answer 1

The expected value of the ticket is -$1.10

Explanation:

Here, we want to find the expected value of the ticket sales

We start by calculating the probabilities

The probability that someone wins the system is 1/2000

The probability that a person loses the system is 1999/2000

So the expected value will be;

(1/2000 * 1,800) - (1999/2000 * 2)

= 0.9-1.999 = -1.099

To the nearest cent, this is -1.10