What is the expected value if you choose four numbers? $
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Transcribed Image Text:Here are the basic rules of Club Keno:
• You choose how many numbers you will pick. You can pick anywhere from 1 to 10 different numbers.
• Pick your numbers between 1 and 80.
• A drawing is held in which 20 numbers are picked.
• Depending on how many of your numbers come up in the drawing, you win various amounts of money.
n a previous assignment we saw the number of ways to choose exactly x correct from a total of n picks, you
vould do:
nx * 80-n20-x
Ve also saw the total number of possible outcomes in Club Keno are 80C20.
Four Numbers - Expected Value
According to the Michigan Lottery the best odds of winning are when you pick four numbers. If all four
numbers come up then you win $72 for each dollar you bet. If three numbers come up then you win $5 for
each dollar you bet. If two numbers come up then you win $1 for every dollar you bet (net winnings are
zero). Otherwise, you lose the money you bet.
Fill out the following table, assuming a $1 bet. Enter your probabilities as decimals, entering all the digits
you see on your calculator.
Outcome
4 correct
3 correct
2 correct
0 or 1
correct
Probability
What is the expected value if you choose four numbers? $
$
$
4
$
$
Net Value
(Don't forget to account for
the $1 bet)
$
es
$
$
$
Pro
(Round to
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