Answer:
$ 1.2
Step-by-step explanation:
The first thing is to define the expected value of the ticket that would be the sum of the value for all event probabilities.
That is, if you buy 1 ticket, for each participant the probabilities are:
1. 1/1000 to get a $ 1,200 item
2. 999/1000 to get nothing ($ 0).
That is to say:
(1/1000) * $ 1200 + (999/1000) * $ 0 = (1/1000) * $ 1200 = $ 1.2
Therefore, the expected value is $ 1.2, this means that in reality each participant pays $ 0.8 more than the ticket is worth
