“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
Attached Files:
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.