A school is holding a Fixed Raffle where only a certain numb

A school is holding a Fixed Raffle, where only a certain number of raffle tickets can be sold. The school sold 540 of these tickets for $2 each. One of these tickets will win $324, and two of these tickets will win $108, and five of these tickets will win $54.

\"PLEASE SHOW YOUR WORK\".

What is the expected value of each of these tickets for the people the purchase one ticket? ______________

Round to the nearest penny, and if the value is negative, put that into yoyur answer.

Solution

E(X) = expected value for a person

= 324+2*108+5*54 - 540*2 / 540

=-270/540

or -$0.5, a expected loss of half a dollar on every ticket.

So, What is the expected value of each of these tickets for the people the purchase one ticket?

is -$.5