Now, bear in mind that the usual price of a lottery game is $2. Here’s how an article from Business Insider put it, “If my expected value for playing the game, based on the cost of playing and the probabilities of winning different prizes, is positive, then in the long run the game will make me money.”įor example, if the US Powerball were to raise a $600 million jackpot, considering that the odds of winning are 1 in 292,201,338, the expected value of a Powerball ticket is $2.05 – which was attained by dividing the amount of the jackpot by the odds of winning the said jackpot. In the case of a lottery game, the expected value can be obtained after considering the amount of the lottery jackpot and the probability of winning that jackpot. The expected value can be considered as the average of all the values obtained after running a probability experiment over a number of times while keeping track of the results. Now what exactly is the ‘expected value’ all about and how can it lead you to making quality decisions with regard to playing the lottery? Including knowing a lottery ticket’s expected value. To you, winning means absolutely considering all things relative to playing the lottery with minimal risks. Do you often pass up the opportunity of winning a $10 million lottery jackpot all because you think it will be better to invest your $2 on a bigger lottery jackpot?
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