What Are the Odds?

Pull-tabs

A box of pull-tabs has 3,399 cards and offers the possibility of winning $250 for a winning card that can be purchased for $1. Here is the payout schedule that the pull- tab seller receives when the box is purchased.

Takes in 3,399 cards at $1 per card	$3,399
PAYOUTS
1 winner @ $250	$250
4 winners @ $249	$996
4 winners @ $100	$400
12 winners @ $25	$300
28 winners @ $10	$280
336 winners @ $1	$336
Payout 75%	$2,562
Profit to the seller 25%	$837

The seller advertises a 75% payout of all proceeds and the chance to win $250 for just a $1 bet!

Given this information, answer the following questions:

1. How many pull-tab buyers will win any amount of money?_________

2. How many buyers will win the grand prize?__________

3. What percent of the winners will win the smallest amount of payout, $1? __________

4. Assuming 3,399 people each buy a $1 card, how many people will lose money gambling on the chance to win $250? __________

5. What percentage of these people will win any amount of money?__________

6. How much money would a person need to spend buying pull-tabs to guarantee he/she would win more than he/she loses?__________

Answer Key