an organization is selling raffle tickets for 20$ each. you purchase one of 500 raffle tickets. the prize for this raffle is 6000$. what is your expected winnings?
1/500 * 6000 - 20
To calculate your expected winnings for the raffle, you need to find the probability of winning and the amount you could potentially win.
The probability of winning can be determined by dividing the number of tickets you purchased by the total number of tickets available. In this case, you purchased one ticket out of a total of 500 tickets, so the probability of winning is 1/500.
Now let's calculate the potential winning amount. The prize for the raffle is $6000. If you win, you would receive the entire prize amount.
To calculate your expected winnings, you multiply the probability of winning by the potential winning amount:
Expected Winnings = Probability of Winning × Potential Winning Amount
Expected Winnings = (1/500) × $6000
Expected Winnings = $12
Therefore, your expected winnings for this raffle are $12.