document.write( "Question 1050934: In Illinois Pick 3 game, you pay 50 cents to select a sequence of 3 digits, such as 285. (There are 1000 possible combinations.) If you win by selecting the correct sequence of digits, you collect $250.
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Algebra.Com's Answer #666555 by Edwin McCravy(20055)\"\" \"About 
You can put this solution on YOUR website!
In Illinois Pick 3 game, you pay 50 cents to select a sequence
\n" ); document.write( "of 3 digits, such as 285. (There are 1000 possible combinations.)
\n" ); document.write( "If you win by selecting the correct sequence of digits, you
\n" ); document.write( "collect $250.\r
\n" ); document.write( "\n" ); document.write( "a. Find the net profit for winning, and find the expected value.
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document.write( "The net profit if you win = $250.00-$0.50 = $249.50\r\n" );
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document.write( " Events       Winnings     Probability     Expectation   \r\n" );
document.write( "                 X             p(X)           X*P(X)\r\n" );
document.write( "Selecting \r\n" );
document.write( "the right     $249.50         0.001          $0.2495\r\n" );
document.write( "number\r\n" );
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document.write( "Selecting\r\n" );
document.write( "the wrong      -$0.50         0.999         -$0.4995\r\n" );
document.write( "number \r\n" );
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document.write( "                        Total expectation = -$0.25\r\n" );
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\n" ); document.write( "b. What does this expected value mean?
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document.write( "This means if you were to play this game thousands of \r\n" );
document.write( "times, sooner or later you will win.  But if you average \r\n" );
document.write( "up your winnings of +$250 and your losses -$0.50 over all\r\n" );
document.write( "those times you played, you will find that you have averaged \r\n" );
document.write( "losing about a quarter every time you played.  \r\n" );
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document.write( "[The owner of the game is averaging profiting a quarter \r\n" );
document.write( "every time somebody plays.  In other words, the owner \r\n" );
document.write( "averages keeping half of all the money his (or her)\r\n" );
document.write( "customers pay to play.] \r\n" );
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document.write( "Edwin
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