California(CA) Super Lotto Prize Analysis for Wed Nov 25, 2020
As legally required by the state of California, taxes are withheld on lottery winnings of $600.00 or more. For prizes over $5,000.00, US citizens and resident aliens with a social security number are subject to a 25% deduction to their prizes, which represents federal taxes. Luckily, lottery prizes are exempt from California state and local personal income taxes. For more information on taxes for lottery winnings in the state of California, click here.
- Choose Payment Option: The jackpot winner of California(CA) Super Lotto has 60 days to decide to take a one time lump sum cash payment or 26 graduated annual installments after the claim approval.
- Cash Option: California(CA) Super Lotto cash option is a single lump-sum payment of 45%
Superlotto plus analysis
Sanderson M. Smith
A STATISTICAL ANALYSIS OF CALIFORNIA’S
SuperLOTTO Plus was introduced by the California Lottery on June 4, 2000. There are nine ways to win, and the jackpot starts at seven million dollars.
The rules for SuperLOTTO Plus are relatively simple. There are two number sets:
Set A: The integers from 1 to 47 inclusive.
Set B: The integers from 1 to 27 inclusive.
A player spends $1 for the privilege of selecting five numbers from Set A, and one number, called the MEGA number, from Set B. All prize payout amounts are pari-mutual. That is, the amount of money varies from week to week, depending upon the sales levels and the number of winners. The jackpot prize, obtained when one matches all five numbers and the MEGA number, has a stated minimum value of seven million dollars.
There are nine ways to win in SuperLOTTO Plus. Probabilities and odds associated with the game are displayed in the table below. Here are some notes and observations relating to the table:
- When playing, two events are involved. One involves choosing five numbers from Set A, and the second consists of picking one number from Set B. The two events are statistically independent, so related probabilities can be multiplied, as is done in the table.
- The probability that a player matches the MEGA number is 1/27, and the probability that the MEGA number is not matched is 26/27.
- The symbolism nCr represents the number of different sets of r objects that can be selected from a set of n objects. For instance, consider the set
. If I want to choose two colors from this set, there are 4C2 = 6 ways this can be done. The six possible sets are , , , , , and . Modern calculators (the TI-83, for instance), have menus that include nCr.
- A number such as 2.41451E-08 is 2.41451/108, which is 0.0000000241451. (This number does appear in the table.)
It is often helpful to represent very small probabilities in the form 1/x using the algebraic identity
For instance, the probability of hitting the jackpot is 0.0000000241451 (see table). Using the algebraic identity, this can be written as
0.0000000241451 = 1 / (1/0.0000000241451) = 1 / 41,416,353.
In other words, the odds of winning the jackpot are 1 in 41,416,353.
Here is a statistical analysis of SuperLOTTO Plus:
ODDS: 1 in —
Match FIVE and MEGA
(5 C 5)(42 C 0) (1/27) / 47 C 5
Match FIVE and NO MEGA
(5 C 5)(42 C 0) (26/27) / 47 C 5
Match FOUR and MEGA
(5 C 4)(42 C 1) (1/27) / 47 C 5
Match FOUR and NO MEGA
(5 C 4)(42 C 1) (26/27) / 47 C 5
Match THREE and MEGA
(5 C 3)(42 C 2) (1/27) / 47 C 5
Match THREE and NO MEGA
(5 C 3)(42 C 2) (26/27) / 47 C 5
Match TWO and MEGA
(5 C 2)(42 C 3) (1/27) / 47 C 5
Match ONE and MEGA
(5 C 1)(42 C 4) (1/27) / 47 C 5
Match NONE and MEGA
(5 C 0)(42 C 5) (1/27) / 47 C 5
TOTAL PROBABILITY OF WINNING SOMETHING =
Overall odds of winning are 1 in
As the table indicates, the probability of hitting the jackpot is quite small. To use a time perspective, suppose you continually “invested” $1 per second in SuperLOTTO Plus. Mathematically speaking, you would have to play continuously for over 15 months to expect to hit the jackpot once. And, you could expect to invest over 41 million dollars to get a return that could be as small as 7 million dollars.
But then, while they may be few and far between, there are those who spend $1 and end up as big winners in games like SuperLOTTO Plus.
“Oh, many a shaft at random sent
Finds mark the archer little meant.”
A Mathematics Resource for High School Students and Teachers ]]>
-Sir Walter Scott: The Lord of the Isles