posted by mariely on .
suppose a local symphony decides to raise money by raffling a microwave oven worth $400, a diner for two worth $80, and 2 books worth $20 each. a total of 2000 tickets are sold at $1 each. find the expected value of wining for a person who buys one ticket in the raffle.
expected value = (400 + 80 + 40)(1/2000) = .26
so the expected value of winning is 26 cents