Lottery. Iowa has a lottery game called Pick 3 in which customers buy a ticket for $1 and choose three numbers, each from zero to nine. They also must select the play type, which determines what combinations are winners. In one type of play, called the “Straight/Box,” they win if they match the three numbers in any order, but the payout is greater if the order is exact. For the case where all three of the numbers selected are different, the probabilities and payouts are:

a) Find the amount a Straight/Box player can expect to win.

b) Find the standard deviation of the player’s winnings.

c) Tickets to play this game cost $1 each. If you subtract $1 from the result in part

a, what is the expected result of playing this game?

Transcribed Image Text:

Probability Payout Straight/Box Exact Straight/Box Any 1 in 1000 $350 5 in 1000 $50