SOLUTION: Many states conduct daily lotteries of one type or another. numbers, is a popular type. A player selects any three digits number from 000 to 999. (any number that seems lucky to th

Question 128710This question is from textbook fundamentals of maths
: Many states conduct daily lotteries of one type or another. numbers, is a popular type. A player selects any three digits number from 000 to 999. (any number that seems lucky to the player).In New York a player may select a number for $1 dollar. If the player wins, the playoff is $500. How many three digits numbers exist in this lottery? what is a players choice of winning? What is a fair price to pay for a ticket? What can you conclude about the cost of playing this lottery?
This is the answer i get, please tell me if i am on the right track?
1/500 times 3/999 then add the numbers together. I appreciate your help. This question is from textbook fundamentals of maths

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A player selects any three digits number from 000 to 999. (any number that seems lucky to the player).In New York a player may select a number for $1 dollar. If the player wins, the playoff is $500.
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How many three digits numbers exist in this lottery?
Ans: 1000
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What is a players chance of winning?
Ans: 1/1000
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What is a fair price to pay for a ticket?
Calculate expected value:
Let x be the random variable for "gain":
X-values are -1 and 500
Related probabilites are (999/1000) and (1/1000)
Expected value is (-1)(999/1000) + 500(1/1000) = -499/1000 = 0.499 dollars
or -49.9 cents.
A fair price to play is 50 cents
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What can you conclude about the cost of playing this lottery?
If you play, consider that 50 cents of your dollare is for charity.
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Cheers,
Stan H.
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