Re: Risk/Probability Related Interactions with Public -

[Bernard L Cohen <blc+@pitt.edu>]

On Wed, 29 Jul 1998, Bob Giansiracusa wrote:
> 
> On the other hand, if one interprets the statement of the odds "really"
> being 1 in 80 million (for a $250,000,000 win), the expected return
> on the $1 investment is $ 250/80 = $3.125 - also not a bad investment.
	Since far more than $80 million are spent in buying lottery
tickets, there will probably be several winners to split the $250,000.
Also, the $250,000 is to be paid out over several decades (40 years if I
remember right), so you should include the interest on your $1. I assume
that the people operating the lottery are making money on it.