Question 5 • Mathematics III
Expected value uses each possible net gain multiplied by its probability. If a ticket wins the car, the net gain is $30,000 − $20 = $29,980, with probability 1/5,000. A gift-card winner nets $100 − $20 = $80, and the five gift cards give probability 5/5,000 = 1/1,000. The other 4,994 tickets lose, so their net gain is −$20 with probability 4,994/5,000 = 2,497/2,500; this is the equation in choice C.
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