A lottery has one $2000 prize, two $1000 prizes, and ten $500 prizes. Two thousand tickets are sold at $5 each. Find the expectation if a person buys two tickets.

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The expected value is calculated by finding the probability of each outcome, multiplying by the prize, and summing these values. The total prize money is $2000 + 2*$1000 + 10*$500 = $9000. The probability of winning any prize with one ticket is (1/2000 for $2000) + (2/2000 for $1000) + (10/2000 for $500). For two tickets, multiply probabilities by 2. The expected winnings for two tickets is $4.00. Subtract the cost of two tickets ($10) to get the expectation: $4.00 - $10 = -$6.00. Divide by 2 for per ticket expectation: -$3.00. The closest choice is A) -$1.00 per ticket.

A Lottery Has One $2000 Prize, Two $1000 Prizes, and Ten