A raffle sells 1,000 tickets at ₹10 each. One ticket wins ₹5,000 and two win ₹1,000 each. What is the expected net gain from buying one ticket?

Explanation

1. 01

   Expected winnings: $\frac{5{,}000 + 2 \times 1{,}000}{1{,}000} = 7$ rupees.

2. 02

   Less the ₹10 ticket: $7 - 10 = -3$ rupees, a loss of ₹3 on average.