3 ms·
Only if you don't factor in taxes and multiple winners. This article added in sales numbers to estimate the actual expected value and it peaks around a $500 mi
by angry_moose 3y ago
Only if you don't factor in taxes and multiple winners.
This article added in sales numbers to estimate the actual expected value and it peaks around a $500 million jackpot with an expected value of $.85 from a $2.00 ticket. (very close to the bottom)
https://bigthink.com/starts-with-a-bang/math-of-powerball/ https://bigthink.com/starts-with-a-bang/math-of-powerball/
- panarky 3y agoYou can use the Kelly Criterion [0] to compute the optimum bet amount given the odds, the payoff, the cost of a ticket, and the size of your bankroll. Usually the optimum bet is zero because the expected value is negative. But when the jackpot gets big enough, occasionally the Kelly Criterion will advise buying a ticket or two if your bankroll is really big, like $10 million. [0] https://en.wikipedia.org/wiki/Kelly_criterion https://en.wikipedia.org/wiki/Kelly_criterion