Lottery at the +EV Point - Page 6

csuf_gambler · #51 10-19-2005, 11:33 PM

the mega millions here in cali was up to like $280 million a month ago. i normally don't play the lotto but i started playing it when it hit 200 mil. in addition, the cali super lotto was also at like 40 mil so i would buy mutliple tickets for both lottos. the mega millions is getting up there again, its currently at 100 mil. gonna start buying soon...

who gives a sh1t about ev in the lotto. a few dollars can turn into hundreds of millions, thats pretty ev to me.

AA suited · #52 10-20-2005, 12:31 AM

i buy lottery tickets for entertainment value.

discussing it w/friends, neighbors, coworkers, etc, plus dreaming big for 3 days is worth the -$.20 EV.

as for diminishing utility:
-you need about $5M to retire comfortably for the next ~40 yrs at ~75k/yr in today's $.
-you need about $50M to live life like a rock star.

so the utility between $500M and $50M isnt that great because your life cant get that much more exciting.

and while the utility between $50M and $5M is excitement, the greatest utility is between ~50k and $5M, where you get FREEDOM.

Uglyowl · #53 10-20-2005, 03:48 AM

Grand Prize 1 in 146,107,962.00

$200,000 1 in 3,563,608.83

$10,000 1 in 584,431.85

$100 1 in 14,254.44

$100 1 in 11,927.18

$7 1 in 290.91

$7 1 in 745.45

$4 1 in 126.88

$3 1 in 68.96

Uglyowl · #54 10-20-2005, 03:50 AM

[ QUOTE ]
and while the utility between $50M and $5M is excitement, the greatest utility is between ~50k and $5M, where you get FREEDOM.

[/ QUOTE ]

The marginal utility of money exists, but is overrated IMO. The amount you can give to family and friends splits the marginal utility on the high end making it less than it appears on the surface.