For a Pick 3 lottery, you choose any one of the 1000 three-digit numbers. You pay $1 for your ticket. If your number is chosen you win $600. What is the expected value of winnings.
For a Pick 3 lottery, you choose any one of the 1000 three-digit numbers. You pay $1 for your ticket. If your number is chosen you win $600. What is the expected value of winnings.
If you win, then your gain is $599.
If you lose, then your loss is -$1.
Expected value is $\displaystyle (599)\frac{1}{1000}+(-1)\frac{999}{1000}=~?$