Question

For many​ years, organized crime ran a numbers game that is now run legally by many state governments. The player selects a​ three-digit number from 000 to 999. There are 1000 such numbers. A bet of $2 is placed on a​ number, say number 115. If the number is​ selected, the player wins ​$1000. If any other number is​ selected, the player wins nothing.
Find the expected value for this game and describe what this means.

Answer 1

For many years, organized crime ran a numbers game that is now run legally by many state governments. the player selects a three digit number from 000 to 999. there are 1000 such numbers. a bet of $1 is placed on a number, say number 115. if the number is selected, the player wins $500. if any other number is selected, the player wins nothing. find the expected value for this game and describe what it means