Each student will complete a lottery project.

Two lotteries are to be designed and one is to be tested.

Lottery One Specifications

• There are five winning numbers
• There are at least 15 and no more than 30 numbers
• Determine payoffs for 3, 4, or 5 winning numbers
• The lottery is a Fair Game
• The probability of an event and the payoff for the event form
an inverse relationship

Lottery Two Specifications

• There are five winning numbers
• There are at least 15 and no more than 30 numbers
• Determine payoffs for 3, 4, or 5 winning numbers
• The lottery makes a profit of at least 25% and no more than 50%
• The mathematical expectation is calculated

Lottery Testing

• Select either of the above lotteries
• Collect at least 400 entries (You may collect 20 from each individual.)
• Compare the mathematical expectation to your actual winnings

Report

• Show your calculations for each lottery
• Include the data comparing your results from the lottery testing
• Write a summary analyzing your results
• Neatness and organization are expected