Answer:
The expected wining from 1 ticket will be −41 cents.
Step-by-step explanation:
Consider the provided information.
A raffle offers a first prize of $1000, 2 second prizes of $300, and 20 third prizes of $10 each.
Out of 20000 tickets the probability of not winning is:
[tex]1-\frac{1+2+20}{2000}=1-\frac{23}{20000}=\frac{19977}{20000}[/tex]
The expected value of gain or loss is:
[tex]EV=\sum P(x_i)\times X_i[/tex]
[tex]EV=1000\times\frac{1}{20000}+300\times\frac{2}{20000}+10\times\frac{20}{20000}-0.50\times\frac{19977}{20000}[/tex]
[tex]EV=0.05+0.03+0.01-0.499425[/tex]
[tex]EV\approx-0.41[/tex]
The expected wining from 1 ticket will be −41 cents.
