Question

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.

PLEASE ANSWER ASAP!!!!!!!!!!

Answer 1

I will assume that the smallest 3 digit number is 100 and the largest 999, giving up 900 possible 3 digit numbers (999-99)

So the prob of picking the correct number is 1/900

the expected return is 1/900 * $750 = $0.83

So the expected loss per play is 17 cents.