OK followers: I just spent the most part of a day on this blog post, so please do me a favor and read it? Make me feel better for all that work. http://rick.measham.id.au/200812/lotteries/
10 months, 4 weeks ago.
2 comments so far
Your blog post seems slightly flawed because it doesn't take into account the rate of return. To guarantee some return on my investment I have to spend $4.86 million. If I spend less than that I might get a negative rate of return. Since I have to share the jackpot with an arbitrary number of people it's still possible to end up with a negative return on my investment.
On the other hand if I put that same amount of money in a retail bank (so that if the worst happens the Government will bail them out) I can expect a risk-free return on my money every time.
If I keep playing the lottery though I will eventually get a negative return which wipes out all my capital.
2 comments so far
Your blog post seems slightly flawed because it doesn't take into account the rate of return. To guarantee some return on my investment I have to spend $4.86 million. If I spend less than that I might get a negative rate of return. Since I have to share the jackpot with an arbitrary number of people it's still possible to end up with a negative return on my investment.
On the other hand if I put that same amount of money in a retail bank (so that if the worst happens the Government will bail them out) I can expect a risk-free return on my money every time.
If I keep playing the lottery though I will eventually get a negative return which wipes out all my capital.
10 months, 4 weeks ago by adewale
Of course. I'm not suggesting it's a good way to invest your money. Just that it isn't as stupid as you're supposed to believe.
10 months, 4 weeks ago by RickMeasham