Solution with steps please!

Question

400 fundraiser raffle tickets are sold for $20 each for four cash prize amounts: $350, 200, $100, $50. What is the expected value of the payout?



  $1.75

 

  -$18.25

 

  -$18.05

 

  -$1.75

 

Answer 1

350, 200, 100 & 50

each with 1 out of 400 chance

396/400 chance of zero

350/400 + 200/400 + 100/400 + 50/400

= 7/8 + 1/2+ 1/4 + 1/8

= 14/8= 7/4

likely $1.75 winnings

but subtract from that

396/400 x -20 = -396/20 =-198/10 = -19.8

1.75-19.8 = -$18.05

third choice wins