Question

A raffle is held at MTHS ASB to draw for a $1000 plasma television. Two thousand tickets are sold at $1.00 each. Find the expected value of one ticket.

Answer 1

Answer:

$0.5

Step-by-step explanation:

"The expected value of one ticket" is what the cost of the television covers.

If 2000 tickets are sold for $ 1 the total amount of all tickets sold is

$2000.(1)= 2000$

To calculate the expected value of a single ticket, we have to divide the cost of the TV by the price of all tickets sold.

$\frac{1000}{2000}= 0.5$

Answer 2

The "expected value of a ticket" is the probability of being drawn multiplied by the earnings associated to being drawn.
($1 is the price of the ticket which of course can be different).

So in this case probability is 1/2000 and the earnings would be valued $1000 (value of the plasma TV).
The expected value is 1/2000*1000=1000/2000=$0,5

This means you should not buy a $1 ticket to play except if this really brings you LOTS of amusement ;)