Answer:
-$0.67
Step-by-step explanation:
If you buy one ticket, the possible outcomes are:
100% chance of spending $1 (buying the ticket)
1 in 5,000 chance of winning $500
3 in 5,000 chance of winning $300
5 in 5,000 chance of winning $30
20 in 5,000 chance of winning $5.
The expected value of the raffle is determined by:
[tex]E(X)=-1+\frac{1}{5,000}*500+\frac{3}{5,000}*300+\frac{5}{5,000}*30+\frac{20}{5,000}*5\\E(X)=-\$0.67[/tex]
The expected value of this raffle if you buy 1 ticket is -$0.67.
