In Lotto Max, 7 distinct winning numbers are selected at random from 1 to 49, inclusive.
What is the expected value of the smallest winning number?
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I'll solve this problem in general, where b distinct numbers are chosen from 1 to a . Let E ( a , b ) represent the expected value.
In order to find the expected value, we need to find the probability of k being the smallest number, where 1 ≤ k ≤ a . If k is the smallest number, that leaves a − k possibilities for the other b − 1 numbers. Hence the number of combinations where k is the smallest chosen number is given by: ( b − 1 a − k ) . And the total number of possible combinations is ( b a ) .
Hence, the expected value is given by: E ( a , b ) = ( b a ) 1 k = 1 ∑ a k ( b − 1 a − k ) Now I say that k = 1 ∑ a k ( b − 1 a − k ) = ( b + 1 a + 1 ) . Why? This can be proved algebraically, or combinatorially. I'll give you the latter. Clearly ( b + 1 a + 1 ) is the number of ways to choose b + 1 objects out of a + 1 objects. To count it another way, let k + 1 represent the 2 n d smallest number chosen. Then there are k choices for the smallest number, and the number of ways to choose the rest of the objects is ( b − 1 ( a + 1 ) − ( k + 1 ) ) = ( b − 1 a − k ) . Hence the number of ways to choose b + 1 objects out of a + 1 objects can also be calculated as k = 1 ∑ a k ( b − 1 a − k ) . □
Therefore E ( a , b ) = ( b a ) ( b + 1 a + 1 ) . Using the factorial expansions, this can be simplified to E ( a , b ) = b + 1 a + 1 .
So, for this particular problem, we have E ( 4 9 , 7 ) = 8 5 0 = 6 . 2 5 .