Homework Help: PLEASE SOMEBODY Answer this Statistics question!

Posted by Andrew on Sunday, April 27, 2008 at 11:44pm.

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 SOMEBODY Answer this Statistics question! - bobpursley, Monday, April 28, 2008 at 8:11am
This is not statistics.

Expected profit= winvalue*probability - cost*probability.

There is one chance in 999 of winning. There are 998 chances of losing. Correct?

expected profit=750*1/999 - 1*998/999

It reminds me of the lotto, with over 1/2 the money being raked off for political uses, it is hard to justify gambling except to "help education", as the expected value of playing is greatly negative.

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