Question

Imagine a raffle in which you pay $1 for a ticket and you have a 1 out of 100 chance of winning$50. What is the expected value for this raffle

The expected value for this raffle According to probability is $50. According to the statement we have given that the the amount of ticket is$1 and you have a 1 out of 100 chance of winning $50. And we have to find the expected value for this raffle. So, For this purpose, we know that the In probability , the expected value is a average. Informally, the expected value is the arithmetic mean of a large number of selected outcomes of a random variable. And Here the chances of winning the raffle is$50
The expected value for this raffle = -50$So, The expected value for this raffle According to probability is$50.