Comment by forinti
4 years ago
I remember the first time I read about this. I put in the numbers for the lottery and a negative number came out. Of course! Your expected winnings are negative and you shouldn't play the lottery.
4 years ago
I remember the first time I read about this. I put in the numbers for the lottery and a negative number came out. Of course! Your expected winnings are negative and you shouldn't play the lottery.
Well, most of the time, anyway. If you do find a lottery game where the odds are in your favor, something resembling the Kelly criterion is a reasonable starting point for a bankroll-management strategy.