A charity holds a raffle in which each ticket is sold for $30. ?
A total of 9400 tickets are sold. They raffle one grand prize which is a BMW M3 valued at $65000 along with 4 second prizes of DuWhat are the expected winnings for a single ticket buyer? Ducati motorcycles valued at $11000 each.
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Total prize value:
1 * $65,000
4 * $11,000
-------------
= $109,000
Total amount spent on the tickets:
9400 * $30
= $282,000
The prizes minus the raffle ticket cost results in a negative amount for the player:
109,000 - 282,000
= -173,000
Divide that over the 9400 tickets to find the expected *loss* for a single ticket buyer.
-173,000 / 9400
= -18.40
Answer:
The *loss* per ticket is $18.40
(In other words, the expected prize value is $11.60 but they had to buy a $30 raffle ticket, so it's a loss of $18.40 for each ticket.)