Answer
a)1000 ways
b)$\frac{1}{1000}$
c)499
d)-50 cents
e)Craps is better.
Work Step by Step
a) In each selection there are 10 ways to select, threfore the number of selections: $10\cdot 10 \cdot 10=1000$ ways.
b) Out of the 1000 possibilities 1 possibility would win us the prize therefore the probability is:$\frac{1}{1000}$.
c)net profit=winning-bet=500-1=499
d) Expected value: $500\cdot\frac{1}{1000}+(-1)\cdot \frac{1000}{1000}=0.5-1=-0.5=-50 cents$
e)The 1 dollar bet on craps is better, it's expected value of -1.4 cents is a lot more than the lottery's -50 cents expected value.
