expected value of winning Big 4 lottery w/ bet of $100

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domenica

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Nov 25, 2006
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I need some help with the following problem:

In the Big 4 lottery, for a bet of $100, the payoff is $5000. What is expected value of winning? Is it worth it?

Thanks..
 
The "Big 4" a lottery that in order to win a player must correctly match four digits from a daily lottery in which four digits are selected.

I've tried to solve it but i'm not sure it is this answer:

$5000 ( 64/1000 ) - $100 = 220
 
Assume I am a complete moron, and tell me exactly what the rules of the game are in painful detail, you still have not provided enough information for a solution. By four digits you mean that a random process will generate some number between 0 and 9999 and you need to guess it correctly?
 
yeah it means that 4 numbers would be selected at random and in order to win you need to guess it correctly...
 
The odds of winning are 1/10000.

\(\displaystyle \L\\$4900(\frac{1}{10000})+(-100)(\frac{9999}{10000})={-}$99.5\)

You can expect to lose an average of $99.5 for each ticket you buy.
 
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