In a raffle, one ticket will win a $930 prize, and the other tickets will win nothing. There are 500 in the raffle, each costing $6. If you buy a ticket, what is the expected profit?
[tex]\begin{gathered} Step\text{ 1} \\ P\text{robabili}ty\text{ of wining = }\frac{1}{500} \\ P\text{robability of not wining is = }\frac{499}{500} \\ \text{Expecting Value = }\frac{1}{500}(930)\text{ + }\frac{499}{500}(-6) \\ \text{ = }\frac{930}{500}\text{ - }\frac{2994}{500} \\ \text{ =1.}86\text{ -5.988} \\ \text{ = -4.128} \\ \text{From the answer it means you are expepcted to loss} \end{gathered}[/tex]
