Question
Tickets for a raffle cost $14. There were 834 tickets sold. One ticket will be randomly selected as the winner, and that person wins
$
$1200 and also the person is given back the cost of the ticket. For someone who buys a ticket, what is the Expected Value (the mean of the distribution)?
$
$1200 and also the person is given back the cost of the ticket. For someone who buys a ticket, what is the Expected Value (the mean of the distribution)?
Answers
bobpursley
expected value=(1/834 *(1214)) -14
This is expected value of the ticket before purchase.
one expects to lose 12.54 on each ticket.
This is expected value of the ticket before purchase.
one expects to lose 12.54 on each ticket.