Question

The pto is selling raffle tickets to raise money for classroom supplies. a raffle ticket costs $4. there is 1 winning ticket out of the 300 tickets sold. the winner gets a prize worth $64. round your answers to the nearest cent. what is the expected value (to you) of one raffle ticket?

Answer 1

As 300 tickets are sold , the probability of being a winner is = $\frac{1}{300}$

The prize value is $64 or $\frac{1}{300}\times64$

= 0.213

The cost of ticket you paid = $4

Hence, the expected value of one ticket = 0.213-4 = -3.787 or rounding off we get -3.79