Why a Mega Millions Ticket is a Good Investment

excerpt The Monkeycage

As I understand it, the expected payoff from a lottery ticket is simply the probability that you win times the value of jackpot. According to CNN, the chances of winning the lottery are 1 in 175 million, and the jackpot is $640 million. Let’s even posit that you lose half of the present value of the jackpot to taxes and the fact that you probably don’t actually get all of the money now, we’re still looking at a 1 in 175 million chance of winning $320 million dollars. By my calculation, that means the expected value of a lottery ticket is $1.83. Since a lottery ticket only costs $1, that would suggest that on this particular day, a Mega Millions lottery ticket is a good investment.

State Of Things NC

Talking About Politics

NYT > The Upshot

Guernica / Art & Politics

Carolina Journal

Basketball, Lacrosse, etc.

Reason Magazine

BlueNC

Republic Report

SCOTUSblog

The Page

Politico 10

CommonBlog

Roll Call Special Sections

Free Press

TED Blog

ProPublica: Articles and Investigations

The Progressive Pulse

Huffington Post

Newser Politics

Politico Playbook

Project Syndicate

Xconomy

Politics Daily

AL JAZEERA ENGLISH (AJE)

White House

Politico Huddle

POLITICO

Episcopal Cafe