Question

One thousand raffle tickets are sold at $2 each. Six prizes will be awarded, one first prize worth $500, two second prizes worth $300 and three third prizes worth $100. Oliver purchases one of the tickets. Find his expectation.

Answer 1

Oliver would have a 1/1000 chance of getting $500, a 2/1000 chance of earning $300, and a 3/1000 in earning $1000. He would have a 994/1000 chance of making no money back