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

677. If you select the same sequence of three digits that are​ drawn, you win and collect $313.73

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 $ 1.46 in a certain​ state's Pick 4​ game, the expected value is negative $ 1.06−$1.06.

Which bet is​ better, a $1.46 bet in the Pick 3 game or a $ 1.46 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 1