Problem 3 At a raffle, there is a grand prize of $200 and five consolation prizes of $20.
They sell 500 tickets.
At the end of the day, six winning tickets are drawn at random - meaning
that every ticket sold has the same probability of 1/500 to win any one of
the six prizes.
a) What are the expected winnings of this game (the expected value of the
amount one ticket wins)?
b) One ticket costs $3. What is the expected value of one ticket? Please
show work - the answer alone will not get full credit.