Question
The numbers game is a gambling game. One version of this game works as follows: you choose one of the 1,000 three-digit numbers between 000
The numbers game is a gambling game. One version of this game works as follows: you choose one of the 1,000 three-digit numbers between 000 and 999 and pay $1 to enter your bet. Each day, one three-digit number is randomly selected. If the chosen number matches your number, you win $700--that is, the payoff is $700. If the chosen number does not match your number, you lose your $1--that is, the payoff is $0. The mean payoff for thousands of $1 bets is 70 cents. Casper takes thousands of $1 bets like this every day. (He runs the numbers game.)
Which one of the following is true?
A. We can't say anything about Casper's average profit or loss because he has to hand out $700 to every gambler who gets the number correct.
B. Casper's average loss will be close to 70 cents per bet.
C. Casper's average loss will be close to 30 cents per bet.
D. Casper's average profit will be close to 70 cents per bet.
E. Casper's average profit will be close to 30 cents per bet.
F. Casper will eventually break even
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