it cost $2 to buy a raffle ticket. if there are 500 tickets sold, and there is one first prize of $250, three second prizes of $100, and five third prizes of $50, what is the expected value of this raffle?

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whats the answer?

To find the expected value of this raffle, we need to calculate the probability of winning each prize and multiply it by the value of each prize. Then, we sum up the products to get the expected value.

First, let's calculate the probabilities of winning each prize.

The total number of tickets sold is 500, so the probability of winning the first prize is 1/500 (1 winner out of 500 tickets).
The probability of winning a second prize is 3/500 (3 winners out of 500 tickets).
The probability of winning a third prize is 5/500 (5 winners out of 500 tickets).

Next, let's calculate the value of each prize.

The first prize is $250.
The second prize is $100 (3 winners).
The third prize is $50 (5 winners).

Now, let's calculate the expected value.

The expected value is the sum of the probabilities multiplied by their corresponding values:

(1/500) * $250 + (3/500) * $100 + (5/500) * $50 = $0.5 + $0.6 + $0.5 = $1.60.

Therefore, the expected value of this raffle is $1.60.