Expected Value for the Texas Pick 3 Game In the Texas Pick 3 lottery, you can bet $1 by selecting three digits, each between 0 and 9 inclusive. If the same three numbers are drawn in the same order, you win and collect $500.
a. How many different selections are possible?
b. What is the probability of winning?
c. If you win, what is your net profit?
d. Find the expected value.
e. If you bet $1 on the pass line in the casino dice game of craps, the expected value is -1.4¢. Which bet is better: a $1 bet in the Texas Pick 3 game or a $1 bet on the pass line in craps? Explain.