Question

Suppose the auction house from the preceding problem sold 200 tickets at $1 each, and had 16 prizes of $10 each. What is the new expected value?
A) $0
B) $0.2
C) –$0.2
D) $0.8

Answer 1

200/160=1.25

200+160=360/1.25/160=200.8

so your answer is 0.8