To find the expected value, we need to calculate the probability of winning each prize and multiply it by the value of that prize.
There are 1000 tickets sold and 2 tickets purchased, for a total of 2000 possible outcomes (since there are no limitations on the number of tickets a person can win).
The probability of winning the $100 prize is 1/1000, as there is only one $100 prize and 1000 tickets sold.
The expected value for the $100 prize is: (1/1000) * $100 = $0.10.
The probability of winning the $50 prize is also 1/1000.
The expected value for the $50 prize is: (1/1000) * $50 = $0.05.
Similarly, the probabilities for winning the $25 and $10 prizes are both 1/1000.
The expected value for the $25 prize is: (1/1000) * $25 = $0.025.
The expected value for the $10 prize is: (1/1000) * $10 = $0.01.
Adding up these expected values for the four prizes, we get:
$0.10 + $0.05 + $0.025 + $0.01 = $0.185.
Therefore, the expected value of purchasing two tickets is $0.185.
One thousand tickets are sold at $1 each. There are four prizes available of: $100, $50, $25 and $10. What is the expected value, if a person purchases two tickets?
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