raffle with a grand prize $500., 2 second place prizes of $100., 4 third place prizes of $50.. the raffle offers 250 tickets for $4. each. what is probability model , the expected value of a single ticket and the target of $200.to be raised can they expect to raise this much ?

Answer 1

cost = 500 + 200 + 200 = 900
revenue = 250 * 4 = 1000

obviously you can not raise 200

there are 1 + 2 + 4 = 7 winning tickets out of the 250

chance of winning 500 = 1/250
chance of winning 100 = 1/125
chance of winning 50 = 1/62.5

chance of winning anything at all = 7/250

total won = 900
total number of tickets = 250
so mean (expected) value of ticket = 900/250 = $3.60