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
-------------------------------------------
b. what is the probability of winning:1/1000
--------------------------------------------------
c. find the expected value:
E(x) = (1/1000)(249.75)+ (999/1000)(-0.25) = 0.000000
---------------------------------------------------
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
-----
Pick 4 game expected value:
E(x) = (1/1000)(249.50)+(999/1000)(-0.50) = -0.25
=======================
Both games have the same expected loss to the player.
===========================================================
Cheers,
Stan H.
|
|
|
