2) The DC Lottery runs a daily game called “DC Lucky Numbers." In this game, a player chooses three digits (0-9). The bets below cost a total of $2 to play. The prizes, and the probabilities of winning, are displayed in the table below.
Create a probability distribution to model the game above
Event
Value
Probability
Expected Value
Straight Prize (choose all
three winning numbers in
correct order)
$1000
1/1,000 = 0.001
Box Prize (choose all three
winning numbers, out of
order)
$100
5/1,000 = 0.005
No Prize: You lose
1. Calculate the expected value of a $2 DC Lucky Numbers ticket.