# Homework Help: Expected Net Winning

1. Apr 9, 2007

### sdlisa

1. The problem statement, all variables and given/known data
1,000 raffle tickets are being sold for $100 each. The winning prize is worth$75,000. Find the expected net winnign for the winner if he/she buys one ticket.

2. Relevant equations

3. The attempt at a solution

I'm not exactly sure what the "expected" net winnings mean. I've been searching on the internet, but came up empty.

2. Apr 9, 2007

3. Apr 9, 2007

### sdlisa

So I'm thinking this is the equation:
(-$100 * 999/1000) + ($75,000 * 1/1000)

I'm not sure if this is correct.

4. Apr 9, 2007

### jing

This gives that a player on average will lose $24.90 on a$100 dollar bet.

Actually as worded the winner wins $75,000 on a$100 bet so his/her net winnings are $74,900. Suggest you look again at the wording of the question wherever it came from. 5. Apr 9, 2007 ### HallsofIvy What? The problem says expected net winnings. If he wins, he wins 75000 so his net winnings are$75000- 100= $74900. If he loses, his net "winnings" are -$100. The probability he will win is 1/1000 (one ticket out of 1000) and the probability he will lose is 999/1000. His expected net winnings are $74900(1/1000)-$100(999/1000)= (74900- 99900)/1000= -25000/1000= -\$25.

6. Apr 10, 2007

### jing

The problem as stated by OP is the expected net winnings for the winner .

I was querying whether this was what was actually asked.