Saturday, February 28, 2009

How to make money in lottery

In Mass. we will have a jackpot over $250M this Tue. I will go to the Mass. lottery office on Tue morning and buy all possible combination.

I'll be filthy rich if there is only one winner (me).

OK if there is another winner.

You never see my ugly face in USA if there are more than two.

I did some calculation with the expected value = jackpot * probability + 2nd price * probability+... and compare it to the present value of 20 installments based on 3% return and consider 50% tax rate. If my memory is good, $150 M jackpot is a fair value.

Below $150 M jackpot, it is a fool's game but benefiting local towns.

To reduce the chance of duplicated winners, you need not to select #1 to 30, the birthdays.

What we really win for $1 bet.
If we buy the ticket on Tue and the announcement of the winner is on Friday, we've 3 sweet dreams. We will promise how much we donate to charities and friends. Not too bad for $1.

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