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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:
Outcome
Payoff
0, 1, or 2 winning numbers
$0
3 winning numbers
$2
4 winning numbers
$20
5 winning numbers
$480
a. What is the expected value of this game?
b. What is the house edge for this game, expressed as a percentage of $1?
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