Pull-tabs
What Are the Odds?
What are the odds?
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:
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?__________