Suppose you are selling raffle tickets for $3.00 each. You have the following prizes.1 grand prize of $150

1 prize of $75
1 prize of $50
1 prize of $25
5 prizes of $10 each

A total of 500 raffle tickets are sold. What is the expected value of each ticket?

166.66 or 167

500/3= 166.666666666667

34

To find the expected value of each ticket, we need to calculate the expected value for each prize and then sum them up.

First, let's calculate the probability of winning each prize. Since a total of 500 tickets were sold, the probability of winning any individual prize is equal to the number of tickets sold for that prize divided by the total number of tickets sold.

Let's calculate the probability for each prize:

- Grand prize of $150: 1 ticket sold (1/500 probability)
- Prize of $75: 1 ticket sold (1/500 probability)
- Prize of $50: 1 ticket sold (1/500 probability)
- Prize of $25: 1 ticket sold (1/500 probability)
- Prizes of $10 each: 5 tickets sold (5/500 probability, which can be simplified to 1/100)

Now, let's calculate the expected value for each prize:
- Expected value of grand prize: (1/500) * $150 = $0.30
- Expected value of $75 prize: (1/500) * $75 = $0.15
- Expected value of $50 prize: (1/500) * $50 = $0.10
- Expected value of $25 prize: (1/500) * $25 = $0.05
- Expected value of $10 prize: (1/100) * $10 = $0.10

Finally, let's sum up the expected values of all the prizes:
$0.30 + $0.15 + $0.10 + $0.05 + $0.10 = $0.70

Therefore, the expected value of each ticket is $0.70.