4. Attend to precision Probabilities in Cash 4 Lottery Game The Georgia state lottery offers several variations of lottery games. In one of the simplest games, Cash 4, a player picks any four-digit number and places a bet ranging from $0.50 to $5.00. The player wins if his or her number is selected in the daily drawing. The payouts for lottery games are determined by one's odds of winning. The odds in favor of an event are typically expressed as a ratio of the likelihood that an event will happen to the likelihood that an event will not happen. There are several different betting strategies for Cash 4 listed below. Calculate the probability of winning the Cash 4 lottery for each strategy. 1. Play It Straight: Player plays 4 different digits. Player wins only with exact match. 2, Play It Boxed: Player plays 3 of the same digit and 1 other digit. Player wins if the number is drawn in any order. QB M3. Box 2 Pairs: Player picks 2 pairs of numbers. Player wins if the number is drawn in any order 4. Box 1 Pair + 2 Digits: Player picks 1 pair of number and 2 other digits. Player wins if the number is drawn in any order. 5. Box 4 Different Digits: Player plays 4 different digits. Player wins if the number is drawn in any order. Expected Value Expected value is the most likely value of a random variable. In the case of an investment decision, it is the average value of all possible payoffs. In order to find the expected value of a variable, you must first multiply each possible payoff by its probability of occurring, followed by adding all of the products together. For example, let's say that you roll a 6-sided die. If you roll a 3, then you win $5.00. If you don't roll a 3, then you have to pay $1.00. What is the expected value of the game? You should recognize that since the probability of rolling a 3 is 1/6, the probability of not rolling a 3 is 5/6. Therefore, expected value - P(3) . (5) + P(not 3) - (-1) = (1/6) - (5) + (5/6) . (-1)= 5/6- 5/6 - 0. If the expected value is 0, we say the game is fair.of 2 T Read aloud 2 roll a 3, then you have to pay $1.00. What is the expected value of the game? You should recognize that since the probability of rolling a 3 is 1/6, the probability of not rolling a 3 is 5/6. Therefore, expected value - P(3) - (5) + P(not 3) - ( - 1) = (1/6) - (5)+ (5/6) . (- 1) =5/6- 5/6 = 0. If the expected value is 0, we say the game is fair. Expected Value of the Lottery In a certain state lottery, a player chooses three digits, which must be in a specific order. Note that the numbers may lead with the digit 0, so numbers such as 056 or 009 are acceptable numbers. Digits may also be repeated. In each lottery drawing, a three-digit sequence is selected. Any player with a lottery pick matching all three digits, in the correct order, receives a payout of $500. 1. Determine the probability of winning this lottery game means. 2. Calculate the expected value of winning if its costs $3 to play one game and explain what it 3. Determine a fair cost for an individual to play this lottery game