1. What is Lottery Expected Value?

The expected value (EV) of a lottery ticket represents the average amount you would win per ticket if you played many times. It helps determine whether a lottery game is statistically worth playing.

2. How Does the Calculator Work?

The calculator uses the expected value formula:

Where:

• \( \text{Prize} \) — The amount you could win (USD)
• \( \text{Probability} \) — Chance of winning (0 to 1)
• \( \text{Ticket Cost} \) — Price of one lottery ticket (USD)

Explanation: A positive EV suggests the game might be worth playing statistically, while negative EV means you'll lose money on average.

3. Importance of EV Calculation

Details: Calculating expected value helps make informed decisions about gambling and investments by quantifying the average outcome over time.

4. Using the Calculator

Tips: Enter the prize amount in USD, the probability as a decimal between 0 and 1, and the ticket cost in USD. All values must be valid (positive numbers, probability ≤ 1).

5. Frequently Asked Questions (FAQ)

Q1: What does a negative expected value mean?
A: A negative EV means you'll lose money on average if you play repeatedly. Most lotteries have negative EV.

Q2: How do I find the probability of winning?
A: Lottery websites usually publish odds. Probability = 1 / odds (e.g., 1 in 1,000,000 = 0.000001).

Q3: Should I only play positive EV lotteries?
A: While positive EV is statistically favorable, remember that lotteries are designed for entertainment, not profit.

Q4: Does this account for multiple prizes?
A: No, this calculates EV for a single prize. For multiple prizes, sum the EV of each prize level.

Q5: What about taxes on winnings?
A: This calculator doesn't account for taxes. For accurate EV, reduce the prize by expected tax liability.