SOLUTION: you pick 3 lotary games, you pay $.50 to select a sequence of three digits such as 233. If you select the same sequence of three digits that are drawn, you win and collect $250.00
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Question 443020: you pick 3 lotary games, you pay $.50 to select a sequence of three digits such as 233. If you select the same sequence of three digits that are drawn, you win and collect $250.00
a. how many diffrent selections are possible
b. what is the probability of winning
c. find the expected value
d. if you bet $0.50 in Ilw. game the expected value is -25c . which one is better, a 50cent bet in the ilw pick 3 game or a $0.50 cent bet in ilw pick 4 game? Explain
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
You pick 3 lottery games, you pay $.50 to select a sequence of three digits such as 233. If you select the same sequence of three digits that are drawn, you win and collect $250.00
a. how many diffrent selections are possible: 10^3 = 1000
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b. what is the probability of winning:1/1000
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c. find the expected value:
E(x) = (1/1000)(249.75)+ (999/1000)(-0.25) = 0.000000
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d. if you bet $0.50 in Ilw. pick three game the expected value is -25c . which one is better, a 50cent bet in the ilw pick 3 game or a $0.50 cent bet in ilw pick 4 game? Explain
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Pick 4 game expected value:
E(x) = (1/1000)(249.50)+(999/1000)(-0.50) = -0.25
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Both games have the same expected loss to the player.
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Cheers,
Stan H.
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