Answer :
To determine the expected profit of the raffle, the first step is to calculate the expected value.
You have two options, that you get the winning ticket for $940 or that you don't get the winning ticket.
There is a total of 1000 tickets on the raffle, the probability of getting the winning ticket can be calculated as follows:
[tex]P(\$1000)=\frac{1}{1000}[/tex]And the probability of getting a ticket without a prize can be calculated as follows:
[tex]P(\$0)=\frac{999}{1000}[/tex]The expected prize for the raffle can be calculated using the following formula:
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