math statistics

Question

The student council is hosting a drawing to raise money for scholarships. They are selling tickets for $10 each and will sell 700 tickets. There is one $3,000 grand prize, three $500 second prizes, and twelve $30 third prizes. You just bought a ticket. Find the expected value for your profit. Round to the nearest cent.

Answer 1

tickets sold are 700 at $10 each, for total revenue of $7000

they pay out $3000,+ 3($500) + 12($30) = 3000+1500+360= $4860

7000-4860 = $2,140 net profit

shared among 7000 ticket purchases

expected loss = 2140/7000 = about 31 cents loss per ticket