What Are the Odds?

Scratch-off Lottery Tickets

A scratch-off lottery scratch-off game offers a grand prize of $5,000 for a wager of $1. Given the payout schedule below, answer the following quesitons assuming all tickets will be sold:

1. What percent of all money wagered buying scratch-off lottery tickets will be paid back out to holders of winning tickets?_________

2. What is the most frequently won amount of money?_________

3. What are the odds of winning the grand prize of $5,000?_________

4. What percentage of tickets will payout more than $100?_________

5. If all tickets in this game are sold and each ticket is bought by a separate person, how many people will lose money in this game?_________

6. How much money would a person need to spend buying scratch-off lottery tickets to guarantee he/she would not lose more than he/she wins?_________

Prizes and Odds for A $1.00 Scratch-off Lottery Game (based on 15,120,000 tickets sold)
If You Get	Approximate You Win	Approximate Odds*	No. of Winners**
3-Snowflakes	$1	1:10.00	1,512,000
3-Sleds	$2	1:10.64	1,421,280
3-Night Caps	$3	1:20.00	756,000
3-Boots	$10	1:166.67	90,720
3-Fireplaces	$20	1:500	30,240
3-Snowmen	$30	1:750	20,160
3-Scarfs	$500	1:60,000	252
3-Bears	$5,000	1:240,000	63

*Average overall odds of winning a prize are approximately 1:3.95.

**The number of actual winners may vary based on sales, distribution, and number of prizes claimed.

Answer Key