Saturday, February 18, 2006

Powerball

In case you live on a different planet (or in the Cincinnati bubble), I thought I would let you know that the Powerball is up to $365 million. There are only 146 million combinations and tickets are $1. The immediate cash prize is $177 million. So if you take the time to buy every ticket (and no one else wins) you make $31 million. If I had the money, I'd do it.

[I am sure that someone will comment that our government friends will be taking a much bigger cut than $31 million, but I'm a Democrat and enjoy paying taxes.]

But if you're an Econ major, you understand that the expected value of your return on investment is greater than one. E[x]>1

Therefore, you should buy as many tickets as you can. Since no one will. I at least encourage you to buy one ticket. Since they don't sell them in Ohio or Virginia, you need to go into DC or over to Kentucky.

Here are my numbers: 4 10 17 39 46 powerball: 27

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