Question

In: Statistics and Probability

Pennsylvania has a lottery entitled “Pick 4.” To win, a player must correctly match four digits...

Pennsylvania has a lottery entitled “Pick 4.” To win, a player must correctly match four digits from a daily lottery in which four digits are selected.

Question #1 – What is the probability of winning if you play just one number?

Question #2 - In the Pick 4 lottery, for a bet of $100, the payoff is $5000. What is the value of winning? Is it worth it?

Solutions

Expert Solution

1)

total number of outcome of 4 digits =104 =10000

hence probability of winning if you play just one number =1/10000=0.0001

2)

value of winning =(5000)*0.0001=0.5

as this is smaller than value of bet ; therefore it is not worth it,

orchestra answered 2 years ago
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