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No, it it still the case that “if you win the lottery jackpot, then you will win less than the average lottery winner”. Let me see if I can explain in another w
by cortesoft 2y ago
No, it it still the case that “if you win the lottery jackpot, then you will win less than the average lottery winner”. Let me see if I can explain in another way that might make this more clear… the example of only 2 people actually confuses the issue.
So in our example with 50% chance of winning, we know the average number of winners will be n/2, where n is the number of players. This means that the average lottery winner will win prize_pool / (n/2).
Now, let’s say we know I won. That means the average number of other winners is going to be (n-1) / 2. If you add in the known winner (me), we would have an average of 1 + (n-1)/2 winners… meaning the prize per person when I win is going to be prize_pool / (1 + (n-1)/2).
You can clearly see that the prize pool will be smaller when you know I am a winner. If it isn’t clear, just sub in 10 for N and solve it… the average winner will get prize_pool / (10/2) or prize_pool / 5. When I win, the average winner will get prize_pool / (1 + (10-1)/2), or prize_pool / 5.5. You can see that when I win, the average is lower.
This of course works whenever you start with the assumption that a particular person wins… you are turning the 1/2 chance for that person into a 100% chance, which increases the overall average number of winners.
- kgwgk 2y ago> This means that the average lottery winner will win prize_pool / (n/2). Does it? Take the case n=2. Run the lottery a few times and take all the winners. Half the winners win prize_pool. Half the winners win prize_pool/2. How do you define “average lottery winner” so the average lottery winner will win prize_pool / (n/2) = prize_pool ?
- kgwgk 2y agoTaking the n=10 case, because you think n=2 is confusing. > the average winner will get prize_pool / (10/2) or prize_pool / 5. No, the average winner will get expected_prize_pool / expected_number_of_winners. If 5 is the number of winners averaged over all draws - including those without winners - the (average) pot they share has also to take into account draws without winners. The average prize shared in this case is not prize_pool, it’s 1023/1024 times prize_pool.