Question

In a raffle, one ticket out of 50 will win a $190 prize, and one ticket will win a $60 prize. The remaining tickets will win nothing. If you have a ticket, what is the expected payoff?

Answer 1

The expected payoff is:

$E(X)=190\cdot\frac{1}{50}+60\cdot\frac{1}{50}+0\cdot\frac{48}{50}=5$

the expected payoff is 5