In a state\'s Pick 3 lottery game, you pay $ 1.39 1.39 to select a sequence of t
ID: 3356344 • Letter: I
Question
In a state's Pick 3 lottery game, you pay $ 1.39 1.39 to select a sequence of three digits (from 0 to 9), such as 388 388. If you select the same sequence of three digits that are drawn, you win and collect $ 379.64 379.64. Complete parts (a) through (e). a. How many different selections are possible? b. What is the probability of winning?If you win, what is your net profit?
$
(Type an integer or a decimal.)
d. Find the expected value.
e. If you bet
$ 1.39$1.39
in a certain state's Pick 4 game, the expected value is
negative $ 1.01$1.01.
Which bet is better, a
$1.391.39
bet in the Pick 3 game or a
$ 1.39$1.39
bet in the Pick 4 game? Explain.
A.
The Pick 4 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 3 game is a better bet because it has a larger expected value.
Explanation / Answer
won = $379.64
bet amount = $1.39
a.
Total number of selections = 10*10*10 = 1000
b.
P(winning) = 1/1000 = 0.001
c.
Net profit = $379.64 - $1.39 =$378.25
d.
E[X] = 0.001*379.64 - 0.999*1.39 = -$1.00897
PS: We are directed to solve only 1st 4 parts of if multiple parts are posted