Jeff’s school is selling raffle tickets for $1 each. Of all the money collected from the sale of raffle tickets, 80% will go to a scholarship fund, and 20% will go to the winner of the raffle. Jeff bought 5 of the 750 raffle tickets sold. What is the expected payoff for Jeff when playing the raffle, and what does it mean?
A) –$4, which means that Jeff can expect to lose $4
B) –$1, which means that Jeff can expect to lose $1
C) –$0.80, which means that Jeff can expect to lose $0.80
D) –$4, which does not mean that Jeff can expect to lose $4 – only that he could expect to lose $4 on average if the same scenario were repeated many times