March 28, 2017

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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! - ,

    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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