Suppose 10000 tickets are sold in a lottery each for ₹ 1. First prize is of ₹ 1. First prize is of ₹ 3000 and the second prize is of ₹ 2000. There are three third prizes of ₹ 500 each. If you buy one ticket, then what is your expectation?

Explanation

Let X is the random variable for the prize

Since, `E(X)=sumP(X)`
`therefore E(X)=0xx(9995)/(10000)+(1500)/(10000)+(2000)/(10000)+(3000)/(10000)`
`=(1500+2000+3000)/(10000)`
`=(6500)/(10000)=13/20`=₹0.65