7 x 3/4 simplisti version
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Answer:
The expected value of a ticket is of -$5.
Step-by-step explanation:
The expected value of the ticked is the probability of earning each prize multiplied by the prize, and subtracted by the value of the ticket.
Value of the ticket:
$10.
100 tickets are sold. They will award one first prize of $300, one second prize of $150, and one third prize of $50.
Thus, 1/100 probability of earning $300, 1/100 probability of 150 and 1/100 probability of 50. So
The expected value of a ticket is of -$5.