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5000 tickets are sold at $1 each for a charity raffle. Tickets are to be drawn at random and monetary prizes

awarded as follows: one prize of $900, three prizes of $300, five prizes of $20, and 20 prizes of $5 dollars. What is the expected value of this raffle if you buy one ticket?

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expected value of this... View the full answer

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Prize Net winning prize Probability of winning
$900
$900-$1= $899
1 in 5000 =1/5000
$300
$300-$1= $299
3 in 5000 = 3/5000
$20 $20-$1 = $19
5 in 5000 =5/5000
$5 $5-$1 = $4
20 in 5000 = 20/5000

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