SOLUTION: Numbers is a game where you bet $1.00 on any three-digit number from 000 to 999. If your number comes up, you get $600.00. Find the expected net winnings.

Algebra ->  Algebra  -> Probability-and-statistics -> SOLUTION: Numbers is a game where you bet $1.00 on any three-digit number from 000 to 999. If your number comes up, you get $600.00. Find the expected net winnings.      Log On

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Question 62840: Numbers is a game where you bet $1.00 on any three-digit number from 000 to 999. If your number comes up, you get $600.00. Find the expected net winnings.
Answer by stanbon(48568) About Me  (Show Source):
You can put this solution on YOUR website!
Numbers is a game where you bet $1.00 on any three-digit number from 000 to 999. If your number comes up, you get $600.00. Find the expected net winnings.
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The random variable "winnings" are -$1 and +$600
The corresponding probabilities are 999/1000 and 1/1000
The expected "winnings" is (999/1000)(-1)+(1/1000)(600)= -399/1000
= -39.9 cents
You can expect to lose approximately 40 cents of each ticket you buy for $1.00
Cheers,
Stan H.