Question

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 544. If you select the same sequence of three digits that are drawn, you win and collect $378.82. Complete parts (a) through (e).

Answer 1

A. All the possible selections are

$10\times10\times10=1000$

B. The probability of winning is

$\frac{1}{1000}=0.1\%$

C. The net profit is

$378.82-1.27=377.55$

D. Expected value

$\frac{999}{2}=499.5\text{ }\approx500$