100xOdds
100xOdds
  • Threads: 638
  • Posts: 4256
Joined: Feb 5, 2012
March 18th, 2019 at 2:19:25 PM permalink
Lets say the odds are 1M:1 to win the jackpot and tickets costs $2 each.

is $1M or $2M jackpot considered the breakeven EV?
Why?

edit: lump sum
Last edited by: 100xOdds on Mar 18, 2019
Craps is paradise (Pair of dice). Lets hear it for the SpeedCount Mathletes :)
GWAE
GWAE
  • Threads: 93
  • Posts: 9854
Joined: Sep 20, 2013
March 18th, 2019 at 2:27:27 PM permalink
Are you saying a $2 ticket wins 1 mil? Would have to know the HE to say where break even is
Expect the worst and you will never be disappointed. I AM NOT PART OF GWAE RADIO SHOW
Ayecarumba
Ayecarumba
  • Threads: 236
  • Posts: 6763
Joined: Nov 17, 2009
March 18th, 2019 at 2:33:39 PM permalink
Quote: 100xOdds

Lets say the odds are 1M:1 to win and tickets costs $2 each.

is $1M or $2M jackpot considered the breakeven EV?
Why?

The breakeven would be even higher due to deductions for taxes, and the possibility that you would have to share the jackpot. The Wizard has a write up... here

Edit: If the payout is in an annuity, that has to be figured in too.
Last edited by: Ayecarumba on Mar 18, 2019
Simplicity is the ultimate sophistication - Leonardo da Vinci
100xOdds
100xOdds
  • Threads: 638
  • Posts: 4256
Joined: Feb 5, 2012
March 18th, 2019 at 3:39:52 PM permalink
Quote: GWAE

Are you saying a $2 ticket wins 1 mil? Would have to know the HE to say where break even is


I assume most state lotteries have HE = 50%.
and the jackpot prize was building up till it is now $1M
Craps is paradise (Pair of dice). Lets hear it for the SpeedCount Mathletes :)
  • Jump to: