The game of 5-spot Keno is similar to 4-spot Keno. 80 numbers are displayed on a board, and 20 of these numbers will be chosen to be the winning numbers. To play, the player selects 5 numbers on his or her playing card. Suppose a player pay $1 to play, and the $1 is not returned. The payoffs made by the Dunes Casino in Las Vegas for each of the possible outcomes are listed here:
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Outcome
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Payoff
|
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0, 1, or 2 winning numbers
|
$0
|
|
3 winning numbers
|
$2
|
|
4 winning numbers
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$20
|
|
5 winning numbers
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$480
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a. What is the expected value of this game?
b. What is the house edge for this game, expressed as a percentage of $1?