Odds. In Exercise, answer the given questions that involve odds.
Texas Pick 3 In the Texas Pick 3 lottery, you can bet $1 by selecting the exact order of three digits between 0 and 9 inclusive, so the probability of winning is 1>1000. If the same three numbers are drawn in the same order, you collect $500, so your net profit is $499.
a. Find the actual odds against winning.
b. Find the payoff odds.
c. The Web site www.txlottery.org indicates “Odds 1:1000” for this bet. Is that description accurate?
Let A is the event of winning. So the actual odds against winning is
Here andso actual odds against winning is
Therefore, the actual odds against winning is