# How to get amount to pay in order to be fair

#### Cool boi

##### New Member
If a man purchases a raffle ticket, he can win a first price of $50,000 or a second price of$20, 000 with probabilities 0.001 and 0.003. What should be a fair price to pay for the ticket?

#### hlsmith

##### Not a robit
< $20K or <$50k. What do you think? Seems like homework, please show your own due diligence and we are happy to help.

#### Miner

##### TS Contributor
Fair is in the eye of the beholder. The organization selling the raffle ticket expects to earn a "fair" return for selling the ticket. Market pressures will tend to balance the different expectations onto a price that will be different from either view of a fair price.

#### Dason

##### Ambassador to the humans
Fair is in the eye of the beholder.
Nah. In a probability problem fair had a much cleaner definition.

#### hlsmith

##### Not a robit
I would base fair also on the number of tickets sold. If only two tickets are sold and you have a 50% chance of either prize - hmm, what would you pay?

But I guess they are giving us the number of tickets sold based on the probabilities.

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