posted by Andrew on .
The local lottery sets up a game wherein a player has a chance of collecting $750.
The player must choose a 3-digit number and if it matches, the player receives $750
It costs $1 to play the game.
What is the expected profit (or loss) for each player.
Since each number varies from 0-9, there is 1/10 chance in matching each number. The probability of all events occurring is found by multiplying the probability of the individual events = (1/10)^3.
Do you think you can take it from here?
I hope this helps. Thanks for asking.