
Originally Posted by
cubs3205
A local teacher's education association decides to hold a raffle. They are going to sell 500 tickets for $20.00 each. 1st Prize is a $5000 scholarship, 2nd Prize is a $1000 scholarship, and the 3rd Prize is a $500 scholarship. You decide to purchase $100 worth of tickets. What are your expected winnings?
a -17.28
b -86.40
c -0.80
d 20.00
I approached it as this
there is 3/500 chance of winning $5000
there is 3/500 chance of winning $1000
there is 3/500 chance of winning $500
and t here is 497/500 chance of losing the 100
so i summed the probabilities and winnings
(3/500)4900 + (3/500)(900) + (3/500)(100) + 497/500(-100)
i don't get any of the answer choices
what am i doing wrong?