The local lottery sets up a game wherein a player has a chance of collecting $80

Question

1. The local lottery sets up a game wherein a player has a chance of collecting $800.
   The player must choose a 3-digit number and if it matches the lottery number, the player receives $800
   000 is a 3-digit number for lottery draws. (as are 001, 023, etc.)
   It costs $2 to play the game.
   What is each player's expected profit (or loss).
   The AVERAGE!
   No words, if it's a loss of $0.02, write it as -$0.02
   NOT loss of 2 cents.
   The FORMAT that is expected :
   $4.00, -$4.00 etc. (Neither of which is the correct answer!)
   NO, $-4.00 would NOT be correct...even if -$4 were the correct answer)
   

1. The local lottery sets up a game wherein a player has a chance of collecting $800.
   The player must choose a 3-digit number and if it matches the lottery number, the player receives $800
   000 is a 3-digit number for lottery draws. (as are 001, 023, etc.)
   It costs $2 to play the game.
   What is each player's expected profit (or loss).
   The AVERAGE!
   No words, if it's a loss of $0.02, write it as -$0.02
   NOT loss of 2 cents.
   The FORMAT that is expected :
   $4.00, -$4.00 etc. (Neither of which is the correct answer!)
   NO, $-4.00 would NOT be correct...even if -$4 were the correct answer)
   

The local lottery sets up a game wherein a player has a chance of collecting $800.
The player must choose a 3-digit number and if it matches the lottery number, the player receives $800
000 is a 3-digit number for lottery draws. (as are 001, 023, etc.)
It costs $2 to play the game.
What is each player's expected profit (or loss).
The AVERAGE!
No words, if it's a loss of $0.02, write it as -$0.02
NOT loss of 2 cents.
The FORMAT that is expected :
$4.00, -$4.00 etc. (Neither of which is the correct answer!)
NO, $-4.00 would NOT be correct...even if -$4 were the correct answer)

Explanation / Answer

PROBABILITY OF WINNING = 1/1000

PROBABILITY OF LOSSING = 999/1000

AVERAGE PROFIT = (1/1000)(800) -(999/1000)(2) = -1198/1000 =1.198 LOSS = -1.198

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