Hi, I am having difficulty with this problem.
New Jersy has a "Pick 3" game in which you pick one of the 1000 3-digit numbers between 000 and 999, recieving $275 for a winning $1 bet and nothing otherwise.
A) Construct the probability distribution of the random variable X = winnings.
For this one, I thought it was simply P(000)=P(001)=P(002)...P(997)=P(998)=P(999)=.001
B) Find the mean of the probability distribution.
I understand what probability distribution is but don't understand how to apply it to this problem. I believe you normally take the number of trials multiplied by the probablility of it happening divided by the overall number. In this case, I know you would divide by a 1000 but how do you figure out the first part to it? :?
C) Based on the mean in (b) and the $1 cost to play the game, on average, how much can you expect to lose each time you play this lottery?
I'm not sure I fully understand this question...
New Jersy has a "Pick 3" game in which you pick one of the 1000 3-digit numbers between 000 and 999, recieving $275 for a winning $1 bet and nothing otherwise.
A) Construct the probability distribution of the random variable X = winnings.
For this one, I thought it was simply P(000)=P(001)=P(002)...P(997)=P(998)=P(999)=.001
B) Find the mean of the probability distribution.
I understand what probability distribution is but don't understand how to apply it to this problem. I believe you normally take the number of trials multiplied by the probablility of it happening divided by the overall number. In this case, I know you would divide by a 1000 but how do you figure out the first part to it? :?
C) Based on the mean in (b) and the $1 cost to play the game, on average, how much can you expect to lose each time you play this lottery?
I'm not sure I fully understand this question...
