Question

here is a raffle with 500 tickets. One ticket will win a $960 prize, and the rest will win nothing. If you ave a ticket, what is the expected payoff?

Answer 1

The expected value is a measure of what you should expect to win per game in the long run. Divide the total prize over the number of tickets to find the expected payoff:

$\frac{960}{500}=1.92$

Therefore, the expected payoff is:

$1.92$