IOWA's pick 4 lottery game is played by selecting a four-digit number between 0000 and 9999.?

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IOWA's pick 4 lottery game is played by selecting a four-digit number between 0000 and 9999.?

IOWA's pick 4 lottery game is played by selecting a four-digit number between 0000 and 9999. If you bet $1 on 1234, what is your expected gain or loss?

2007-04-26 09:18:11 · 3 answers · asked by Sang Chul K 1 in Science & Mathematics ➔ Mathematics

3 answers

In order to answer this question I would have to know how much you would win.

2007-04-26 09:26:41 · answer #1 · answered by bruinfan 7 · 0⤊ 0⤋

You have a 10^-4 chance of winning.

Expected earnings = W*1e-4 - 1*(1-1e-4)
where W is the payoff.

For the lottery people to make money, this payoff must be less than $10,000.

Can you tell me why?

2007-04-26 09:31:07 · answer #2 · answered by Dr D 7 · 0⤊ 0⤋

betting on the lottery? expect to lose $1.

2007-04-26 09:25:03 · answer #3 · answered by Mr. Internet 1 · 0⤊ 0⤋