Answer:
The expected value of this raffle if you buy 1 ticket is $0.41.
Step-by-step explanation:
The expected value of the raffle if we buy one ticket is the sum of the prizes multiplied by each of its probabilities.
This can be written as:
[tex]E(X)=\sum p_iX_i[/tex]
For example, the first prize is $800 and we have only 1 prize, that divided by the number of tickets gives us a probability of 1/5000.
If we do this with all the prizes, we can calculate the expected value of a ticket.
[tex]E(X)=\sum p_iX_i\\\\\\E(X)=\dfrac{1\cdot800+3\cdot200+5\cdot50+20\cdot20}{5000}\\\\\\E(X)=\dfrac{800+600+250+400}{5000}=\dfrac{2050}{5000}=0.41[/tex]
