Five thousand tickets are sold at $1 each for a charity raffle. Tickets are to be drawn at random and monetary prizes awarded a
s follows: 1 prize of $900, 3 prizes of $200, 5 prizes of $40, and 20 prizes of $5. What is the expected value of this raffle if you buy 1 ticket?
The easiest way to do this is calculate the probability that all drives crash, and subtract that from one. The first one is .06 squared subtracted from 1, so it’s .9964 or 99.64%. The second one is .06 cubed subtracted from 1, so it’s .9998, or 99.98 %
