Expected value is obtained by summing the product of the prizes by the individual probabilities.
In this case, there is only one prize of $1400, of which the probability of getting it is 1/700. So the expected value is $1400*(1/700)=$2.
What is the expected value of one 700 tickets in a raffle for a prize of $1400?
2 answers
A charity is holding a raffle and sells 2000 tickets for $2 each. One ticket will win a grand prize of $500. Two other tickets will be selected to win consolation prizes of $50 each. Find the expected value if you buy one raffle ticket.
2 answers