Final answer:
The expected payback for the game is $4, and the expected profit or loss is -$3 per game. It is not advisable to play this game to win money.
Step-by-step explanation:
The expected payback for this game can be calculated by multiplying the probability of winning by the amount won, and subtracting the product of the probability of losing and the amount lost. In this case, the probability of winning is 1/100 since there are 100 possible numbers and you can only choose one. The amount won is $400. Therefore, the expected payback is (1/100) * $400 = $4.
Since you bet $7, your expected profit or loss can be found by subtracting your initial bet from the expected payback. In this case, the expected profit or loss is $4 - $7 = -$3. This means that, on average, you would expect to lose $3 for each game you play. Therefore, it is not advisable to play this game if your goal is to win money.