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?

Solution 43BB

(a)

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

(b)

Since...