Question

Imagine a raffle in which you pay $1 for a ticket and you have a 1 out of 100 chance of winning $50. What is the expected value for this raffle

Answer 1

The expected value for this raffle According to probability is $50.

According to the statement

we have given that the the amount of ticket is $1 and you have a 1 out of 100 chance of winning $50. And we have to find the expected value for this raffle.

So, For this purpose, we know that the

In probability , the expected value is a average. Informally, the expected value is the arithmetic mean of a large number of selected outcomes of a random variable.

And

Here the chances of winning the raffle is $50

And we know that the expected value of the raffle is a chances of not winning the raffle.

So, According to this

The expected value for this raffle = chances of winning - Total chances

The expected value for this raffle = 50 - 100

The expected value for this raffle = -50$

So, The expected value for this raffle According to probability is $50.

Learn more about probability here

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