Question

Tickets for a raffle cost $ 13. There were 619 tickets sold. One ticket will be randomly selected as the winner, and that person wins $ 1800 and also the person is given back the cost of the ticket. For someone who buys a ticket, what is the Expected Value (the mean of the distribution)? If the Expected Value is negative, be sure to include the "-" sign with the answer. Express the answer rounded to two decimal places.

Answer 1

P(win) =1/619

P(lose) =618/619

Mean(Expected value) = (1/619)*(1800) +(618/619)*(-13)

                             = 1800/619 - 8034/619

                             =(1800-8034)/619

                             = -6234/619

                             = -10.07