# Thread: Lottery Winnings: calculate expected net winnings

1. ## Lottery Winnings: calculate expected net winnings

Most states offer weekly lotteries to generate revenue for the state. Despite the long odds of winning, residents continue to gamble on lottery every week. Chance of winning at the Georgia's pick 6 Lotto game is 1 in 23 million. Suppose you buy a $1 lottery ticket in anticipation of winning the$7 million grand prize. Calculate your expected net winning. Interpret the results.

Thank you greatly for your assistance.

2. ## Re: Lottery Winnings

Most states offer weekly lotteries to generate revenue for the state. Despite the long odds of winning, residents continue to gamble on lottery every week. Chance of winning at the Georgia's pick 6 Lotto game is 1 in 23 million. Suppose you buy a $1 lottery ticket in anticipation of winning the$7 million grand prize. Calculate your expected net winning. Interpret the results.
Odds of winning times what you win, plus odds of losing times what you lose, minus the cost of playing:

(1/23,000,000)($7) + [(23,000,000 – 1)/(23,000,000)]($0) - $1 = ? Make sense? 3. ## Re: Lottery Winnings I've been working on the question since I posted it and I found this: odds: 1in 23million there are 6 possibilities: 6! = 720 therefore odds are 23million/720 = 31,944 to one probability of winning with$1 = 1/31,944 = 0.00031304
probability of losing = 1 - 0.00031304 = .99997

Expected return = (potential winning * probability of winning) - (potential cost * probability of losing)
= (7,000,000 * 0.00031304) - (1 * .99997)
= 218.1283

5. ## Re: Lottery Winnings: calculate expected net winnings

wjm11, thank you for your continued help. i really appreciate it thank you.

#### Posting Permissions

• You may not post new threads
• You may not post replies
• You may not post attachments
• You may not edit your posts
•