One thousand raffle tickets are sold for $1.00 each. One grand prize of $200
and two consolation prizes of $50 each will be awarded. Jeremy purchases one ticket. Find his expected value. Show your work for full credit.
Expected value for a probability distribution is
E(x)=∑xP(x)
In this case,
P(200)=1/1000
P(50)=2/1000
P(other prizes)=0/1000
Calculate E(x)