MAth expected value

Question

You purchase one raffle ticket for $1,000. The charity sold 3,000 tickets and one of them will be drawn. The winner of the raffle wins $45,000 prize. What is the expected value? Two events: Win or Lose.

Answer 1

E(V)= 45000/3000-1000=45/3-1000= $15 - $1000

= - $985

or more precisely

= (1/3000)45000 +(2999/3000)(-1000)

= 15- 999.67

= -$984.67

you expect to lose about $985