Five thousand raffle tickets are sold for $5 each. 50 winnings numbers will be chosen, 40 of which will win $100 each and 10 of which will win $1000 each. find the expected value (expected winnings) per $5 ticket sold.

Step-by-step explanation:

Given

there are 50 winning number out of which 40 get $ 100 each and 10 wins $ 1000 .

let x denotes the winning from a randomly selected ticket

Expected value is given by

and Expected return is given by

step-by-step explanation:

step 1: solve one of the equations for one of the variables. let's solve the first equation for y:

step 2: substitute that equation into the other equation, and solve for x.

step 3: substitute x = 4 x = 4 x=4 into one of the original equations, and solve for y.