Question

as a fundraiser, the local charity is raffling off a prize worth $500.00 they plan to sell 1000 tickets at a cost of $1.00 each.
what is the expected value per ticket from the standpoint of the charity?
round your answer to the nearest cent.

Explanation:

Step1: Calculate total revenue

Total revenue = Number of tickets × Price per ticket
$\text{Total Revenue} = 1000 \times \$1.00 = \$1000.00$

Step2: Calculate net gain for charity

Net gain = Total revenue - Prize value
$\text{Net Gain} = \$1000.00 - \$500.00 = \$500.00$

Step3: Find expected value per ticket

Expected value = $\frac{\text{Net Gain}}{\text{Number of tickets}}$
$\text{Expected Value per Ticket} = \frac{\$500.00}{1000} = \$0.50$

Answer:

$\$0.50$