Question 1155649: Infinite Jackpot is a lottery game. It costs 5 dollars to play a state's daily number. The player chooses a two digit number between 00 and 99. If the number is selected that day, the player wins 300. Is this a fair game, and if not how do i make it a fair game. What is the probability of winning and prove that the game is a fair game.
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! The expected value is -5(99/100) or -4.95 (loss) +(1/100)($295)=$2.95, he wins $300-$5 paid to play.
The result is -$2. It is not a fair game.
To make it fair, one would have to win $500 and pay for the ticket or $495 altogether. He has to get his $5 back if he plays enough.
Another way to look at it is if he loses 99 times he is out $495. On the last, he has to get $495 and the price of the ticket back to break even.
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