Lottery Numbers In the Big 4 lottery, for a bet of $100,

Chapter 5, Problem 2CTC

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QUESTION:

Lottery Numbers In the Big 4 lottery, for a bet of $100, the payoff is $5000. What is the expected value of winning? Is it worth it?

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QUESTION:

Lottery Numbers In the Big 4 lottery, for a bet of $100, the payoff is $5000. What is the expected value of winning? Is it worth it?

ANSWER:

 Solution:

Step 1 of 2:

  From the given problem we have,

 In the Big 4 lottery, for a bet of $100, the payoff is $5000.

 Then the total number of different 4 digit numbers selected is

 

   

Here we need to find the expected value of winning.


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