In a state\'s Pick 3 lottery game, you pay $1.25 to select a sequence of three d
ID: 3245270 • Letter: I
Question
In a state's Pick 3 lottery game, you pay $1.25 to select a sequence of three digits (from 0 to 9), such as 655. If you select the same sequence of three digits that are drawn, you win and collect $297.77. Complete parts (a) through (e). a. How many different selections are possible? b. What is the probability of winning? (Type an integer or a decimal.) c. If you win. what is your net profit? $ (Type an integer or a decimal.) d. Find the expected value. $ (Round to the nearest hundredth as needed.) e. If you bet $1.25 in a certain state's Pick 4 game, the expected value is -$0.95. Which bet is better, a $1.25 bet in the Pick 3 game or a $1.25 bet in the Pick 4 game? Explain. A. The Pick 3 game is a better bet because it has a larger expected value. B. Neither bet is better because both games have the same expected value. C. The Pick 4 game is a better bet because it has a larger expected value.Explanation / Answer
a) as each digit has 10 choices therefore total number of selection= 10*10*10=1000
b) probability of winning =1/1000=0.001
c)Net profit =297.77-1.25 =$296.52
d) expected value =297.77*(1/1000)-1.25 =-0.95
e)option B is correct; neither bet is better because both games have the same expected value.