In a​ state's Pick 3 lottery​ game, you pay ​$1.27 to select a sequence of three digits​ (from 0 to​ 9), such as 244. If you select the same sequence of three digits that are​ drawn, you win and collect ​$468.14. 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. e. If you bet $1.27 in a certain​ state's Pick 4​ game, the expected value is negative −$0.80. Which bet is​ better, a ​$1.27 bet in the Pick 3 game or a $ 1.27 bet in the Pick 4​ game? Explain. A. The Pick 4 game is a better bet because it has a larger expected value. B. The Pick 3 game is a better bet because it has a larger expected value. C. Neither bet is better because both games have the same expected value.

badlife18va

badlife18va

Answered question

2022-08-09

In a​ state's Pick 3 lottery​ game, you pay ​$1.27 to select a sequence of three digits​ (from 0 to​ 9), such as 244. If you select the same sequence of three digits that are​ drawn, you win and collect ​$468.14.
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.
e. If you bet $1.27 in a certain​ state's Pick 4​ game, the expected value is negative −$0.80. Which bet is​ better, a ​$1.27 bet in the Pick 3 game or a $ 1.27 bet in the Pick 4​ game? Explain.
A. The Pick 4 game is a better bet because it has a larger expected value.
B. The Pick 3 game is a better bet because it has a larger expected value.
C. Neither bet is better because both games have the same expected value.

Answer & Explanation

Alaina Mcintosh

Alaina Mcintosh

Beginner2022-08-10Added 16 answers

a) Number of different selections possible = 10 10 10 = 1000
b) Probability of winning = 1 1000 = 0.001
c) Net profit = $ 468.14 $ 1.27 = $ 466.87
d) Expected value = 0.001 466.87 0.999 1.27 = 0.80
e) Neither bet is better because both games have the same expected value.
Option C is correct.

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