Question

In a​ state's pick 3 lottery​ game, you pay ​$1.33 to select a sequence of three digits​ (from 0 to​ 9), such as 288. if you select the same sequence of three digits that are​ drawn, you win and collect ​$384.13.

Answer 1

A. How many different selections are possible?

B. What is the probability of winning?

C. If you win, what is your net profit?

D. Find the expected value

Answer :

A. sequence of three digits​ (from 0 to​ 9). so 10 numbers.

We know 3 lottery games. So possible selections = 10^3 = 1000

B. Probability of winning = one outcome / total outcomes

P( winning) = $\frac{1}{1000}$ = 0.001

c. Net profit = winning amount - paid amount

= 384.13 - 1.33 = $382.8

D. expected value

E(x) = net profit * winning probability - paid amount * lost probability

E(x) = 382.8 * 0.001 - 1.33 * 0.999 = -0.95

you expect to lose 95 cents per ticket.