You choose to participate in a raffle Raffle tickets sell fr

You choose to participate in a raffle. Raffle tickets sell fro $5 each and there are a total of 10,000 tickets. The prizes in the raffle are:

1st Prize: $20,000 college scholarship (1 winner)

2nd Prize: $10,000 college scholarship (2 winners)

3rd Prize: $1,000 college scholarship (5 winners)

4th Prize: $100 college scholarship (50 winners)

You purchase one $5 raffle ticket. How much of your college tuition can you expect to be paid for by your raffle ticket purchase?

(I\'m pretty sure that you should use the expected value to solve this, but I\'m not exactly sure how that should be applied).

FIRST WE NEED TO FIND THE PROBABILITIES FOR EACH ONE

FOR THE 1 PRIZE WE KNOW THAT WILL BE ONLY 1 WINNER SO THE PROBABILITY WILL BE

1 / 10,000 = 0.0001

FOR 2 PRIZE IS THE SAME

2 / 10000 = 0.0002

FOR 3 PRIZE

5 / 10,000 = 0.0005

FOR 4 PRIZE

50 / 10000 = 0.005

FOR THE OTHER YOU WILL ONLY HAVE A LOOSE OF $5

THAT IS 1 - 0.005 - 0.0005 - 0.0002 - 0.0001 = 0.9942

EXPECTED VALUE

20,000 * 0.0001 + 10,000 * 0.0002 + 1,000 * 0.0005 + 100 * 0.005 - 5 * 0.9942

$0.029