1. ## Expected number problem

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.

2. ## Re: Expected number problem

Tough question. Please define "Expected Value of Winnings". Does it include the expense of playing?

Without

600/1000

With

600/1000 - 1

Without Playing at all

0

3. ## Re: Expected number problem

I got this question in a revision sheet so I definitely have no idea.

4. ## Re: Expected number problem

I will try to find if something is missing with this question and update later.
Thanks.

5. ## Re: Expected number problem

Originally Posted by hsetima
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 $(599)\frac{1}{1000}+(-1)\frac{999}{1000}=~?$

6. ## Re: Expected number problem

Still, is "expected value" the same as "expected value of winnings"? It is so hard to write a perfect question.