Question 1: Arizona’s “Cash 4” is a 4/26 lottery. The lottery costs $1 to enter. If you match all four numbers, you win $10, 000; if you match three numbers correctly, you win $25; and if you match two you numbers you win $2. Find the probability of winning first place. Repeat for second and third place. Question 2: Compute the probability of losing the Cash 4 lottery. Question 3: Use the preceding parts to compute the expected value of the Cash 4 lottery; be sure to include the cost of the ticket in your calculations.

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Question 1: Arizona’s “Cash 4” is a 4/26 lottery. The lottery costs $1 to enter. If you match all
four numbers, you win $10, 000; if you match three numbers correctly, you win $25; and if you match
two you numbers you win $2.
Find the probability of winning first place. Repeat for second and third place.
Question 2: Compute the probability of losing the Cash 4 lottery.
Question 3: Use the preceding parts to compute the expected value of the Cash 4 lottery; be sure
to include the cost of the ticket in your calculations.

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