Question

In a raffle where 3000 tickets are sold for $2 each, one prize of $1700 will be awarded. What is the expected value of a single ticket in the raffle?State your answer in terms of dollars rounded to the nearest cent (hundredth).

Answer 1

-$1.43

Explanation:

Total tickets = 3000

Cost per ticket = $2

Prize to be awarded = $1700

The chance of selling one ticket = 1/total tickets

The chance of selling one ticket = 1/3000

We are aslked to find the expected value of a single ticket

$\begin{gathered} \text{Expected value = }price\text{ awarded }\times Pr(selling\text{ one ticket) - cost per ticket (number of ticket in consideration)} \\ \text{number of ticket in consideration = single ticket} \end{gathered}$$\begin{gathered} \text{Expected value = 1700(}\frac{1}{3000})\text{ - 2(1)} \\ \text{Expected value =0.5667 - 2 } \\ \text{Expected value = -1.4333} \\ \\ \text{Expected value of a single ticket in the raffle is -\ 1}.43 \end{gathered}$