I need help with this problem please
five hundred raffle tickets are sold for $3.00 each,one prize of 500 is to be awarded, Raul purchased one ticket. a) his expected value?
b) the fair price of the ticket?
prob of win = 1/500
a) expected value = (1/500)($500) = $1.00
b) a "fair" price would be $1.00