One thousand raffle tickets are sold for 1 dollar each. One price of 800.is to be awarded. Rena Condos purchases one ticket?

Determine her expected value
Determine the fair price of the ticket
1/800
1 dollar

1 answer

expectedvalue=prizeamount*Prob(winning)
expected value=800*1/1000=.80 dollars

fair price=800/1000