Wednesday, September 18, 2013

Powerball and Lottery Math

The Powerball jackpot has reached $400 million.  At this level, does it make sense to buy Powerball tickets??!  When the jackpots for lotteries get up to certain levels, some people think that it makes sense to buy tickets.  However, the math in this article shows that taxes and the odds of multiple winners makes the expected value iffy -- on buying Powerball lottery tickets -- even at these levels.  Good luck!

Powerball winner probability

powerball lottery expected value

Source: W. Hickey

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