For $5 you can buy a ticket for a drawing for a prize of $2,000. The probability of winning the prize is 0.001. How much money to you expect to win

To determine how much money you can expect to win, you need to calculate the expected value. The expected value is found by multiplying each possible outcome by its probability, and then summing up those values.

In this case, there are two possible outcomes: winning the prize and not winning the prize.

1. Winning the prize:
The probability of winning the prize is 0.001, and the prize amount is $2,000. So the expected value for winning the prize is:
Expected Value (winning) = Probability (winning) * Prize Amount = 0.001 * $2,000 = $2.

2. Not winning the prize:
The probability of not winning the prize is 1 - 0.001 = 0.999. In this case, you don't receive any money, so the expected value for not winning is $0.

Now, to calculate the overall expected value, you need to consider both possible outcomes:
Expected Value (total) = Expected Value (winning) + Expected Value (not winning) = $2 + $0 = $2.

Therefore, you can expect to win $2.