When buying lottery makes sense,

[scaredyclassic]

Even with a half billion it would still make sense to keep my low interest mortgage. I think. All the calculations get too weird if you’re supereich. That’s a problem.

[sdrealtor]

My mother called back laughing. She loved my message. This is coming from a women who in her 80’s saw a course at Mira Costa College about how to save money and live frugally. She called up the professor and asked for tutition discount. He asked her if she wanted to be a guest lecturer.

[no_such_reality]

Expected value isn’t useful when the probabilities are very small or the payoffs extreme.

As for the rich people not buying all the numbers, it’s not because they can do math, it’s because the cost and time of doing it is excessive.

And, the odds of multiple winners is calculable. It’s just additional statistics. Purchased tickets are porportional to jackpot size.

Buy for the fun of it. Like you buy a donut or Starbucks for the occasional enjoyment.

But the biggest question is after I win, will I have enough money to buy my own politician?

[Coronita]

You guys just suck… If you’re going to throw money into the trash, might as well do it for charity…

http://www.sdraffle.com/Overview.aspx

[no_such_reality]

[quote=flu]You guys just suck… If you’re going to throw money into the trash, might as well do it for charity…

http://www.sdraffle.com/Overview.aspx%5B/quote%5D

Um, our Schools are a charity case…

[moneymaker]

I checked it out a little more (boy was it tough to pick those last 20 sets of numbers,actually only 10, I delegated the other 10) and on CA lottery winnings there is no stae or local taxes and they “only” take 25% for Federal taxes. So better than I thought, of course better save 10% to pay the rest of the federal taxes later on.

[Coronita]

[quote=no_such_reality][quote=flu]You guys just suck… If you’re going to throw money into the trash, might as well do it for charity…

http://www.sdraffle.com/Overview.aspx%5B/quote%5D

Um, our Schools are a charity case…[/quote]

You realize once that the lotto started “funding” schools, original dollars earmarked for education were just redirected elsewhere. the Lotto didn’t supplement the education funding in CA.

[no_such_reality]

[quote=flu][quote=no_such_reality][quote=flu]You guys just suck… If you’re going to throw money into the trash, might as well do it for charity…

http://www.sdraffle.com/Overview.aspx%5B/quote%5D

Um, our Schools are a charity case…[/quote]

You realize once that the lotto started “funding” schools, original dollars earmarked for education were just redirected elsewhere. the Lotto didn’t supplement the education funding in CA.[/quote]

Snark
Your head.

🙂

[carlsbadworker]

[quote=no_such_reality]Expected value isn’t useful when the probabilities are very small or the payoffs extreme.[/quote]

Yes, I don’t understand the frenzy about the $600M jackpot. Normal jackpot at $12M is enough for me. And the odds is the same for every drawing.

[carlsbadworker]

[quote=moneymaker]It will definitely get crazy if nobody wins this time! With around 188M tickets purchased last time I’m sure it will be more this time.[/quote]

I read that 400M tickets are already sold in the first 48 hours. My first impression is: damn, the American poor are rich!

[sdrealtor]

If I win the big prize I pledge to endow a scholarship in the study of Real Estate Bubble’s in the name of Professor Piggington!

And to throw one helluva party!

[scaredyclassic]

We lost but did discuss it for an hour over dinner before knowing we lost. I persuaded the kids our lives would probably be worse and definitely no better if we won. The younger two were very disturbed when I told them we would gave to move. But we like our house! Sorry kids, security requires a efferent set up.

Also distressed at bring takn out of their schools. So they were slightly relieved to lose

[moneymaker]

I won!
Well at least 1 of my tickets was a winner. Just as the odds predict I had 1 winning ticket out of 40.

[sdrealtor]

There were 29 winners in CA with 5 numbers but no Mega ball. They each won $250K.

I won $2. Time to call mom and get my $8 back

[pencilneck]

“Statistically, the expected return on a $1.00 lottery ticket with a jackpot of 233 Mil and odds of 176 mil:1 is $1.33 (assuming only 1 winning ticket).”

Not a lottery expert, but large winnings are also paid out over what looks like 26 years.

$1 now for $1.33 returns over 26 years isn’t a great investment, imo.

If you elect for the lump sum payout, you get far less than the advertised jackpot.

(edit: yeah, yeah, I know I’m late to the party, but people seldom mention the part about the lottery effectively being the chance to receive a very low interest rate bond.)

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