One thousand raffle tickets are sold for $4.00 each. One grand prize of $800 and two consolation prizes of $100 each will be awarded. Jeremy purchases one ticket. Find his expected value.

Answer 1

Jeremy has a 1/1000 chance at $800 and a 1/500 chance at $100.

800/1000 + 2*100/1000 = $1 is the ticket's expected value, no matter what was paid.

Answer 2

oooooh okay....thank you for your help :)