Question

In a lottery, 1000 tickets are sold at .25 each. there are 3 cash prizes: 100, 50, and 30. alice buys 5 tickets. what would be a fair price for a ticket

Answer 1

Total revenue generated by 1000 tickets = 1000*($0.25) = $250
Total amount paid in prices = 100 + 50 + 30 = $180
Profit for 1000 tickets = 250 - 180 = $70
Fair price per ticket = $70/1000 = $0.07

Answer: $0.07