Question

At a raffle100 tickets are sold at $2 each for three prizes valued at $100,$ 50 and $25. What is the expected value of one ticket?

Answer 1

The expected value of one ticket at a raffle where 100 tickets are sold at $2 each for three prizes valued at $100,$ 50 and $25, $1.75.

What is the expected value?

The expected value is used to calculate the weighted average of all the possible values of a random variable.

$\sum_{i=1}^n=P_i\times V_i$

Here, P is the probability of winning a prize and V is the value of the price.

At a raffle, 100 tickets are sold at $2 each for three prizes valued at $100,$50 and $25. The probability of winning one person in 100 persons is,

$P=\dfrac{1}{100}$

There are three prices of $100, $50 and $25. Thus, the ticket price expected to win is,

$E=100\times\dfrac{1}{100}+50\times\dfrac{1}{100}+25\times\dfrac{1}{100}\\E=1+0.5+0.25\\E=1.75$

Thus, the expected value of one ticket at a raffle where 100 tickets are sold at $2 each for three prizes valued at $100,$ 50 and $25, is $1.75.

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