Consider a Pick-3 lottery such as the one described in Exercise 6.6. Suppose your birthday is May 14, and like many people, you decide to bet $1 on your birthday number (i.e., 514) on your birthday. There are two options to play, straight or boxed. If you choose to play straight, you win $500 if and only if the number chosen is 514. If you choose to play boxed, you win $80 if the number chosen contains the digits 5, 1, and 4 in any order. Which option would you prefer to play and why?

  • CreatedSeptember 11, 2015
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