“Playing Games with Probability” Please respond to the following:
From the e-Activity, determine the probability of winning your state’s lottery game. Provide a rationale to support your determination.
What is the expected value of a lottery ticket?
See the link to the US Census with data on lottery sales, prizes, administration costs and proceeds available. For your state is the payoff in prizes as a percent of sales higher, lower or approximately the same as the national average?
Week 4 e-Activity
Use the Internet to research the basic lottery system in your state. For example, the state of Ohio has a Pick 5 game where a customer selects 5 single-digit numbers (0-9). Each number can be selected again meaning 9-9-9-9-9 is a possible winner. Be prepared to discuss.
Data on Lottery Sales, Admin and Payouts By State
File Data On State Lotteries.docx (27.52 KB)
Lotteries have become so widely used by states as a revenue source that the Census now tracks annual sales, administration costs and payouts. Lottery sales in 2013 were $62.4 billion. Lottery prizes were $32.8 billion, or 62% of sales. Administration costs were $3.2 billion, or 5% of sales. Proceeds available for state use were $20.4 billion, is 33% of sales. States vary widely. Check out your state.