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Submission + - The Mathematical Case for Buying a Powerball Ticket 4

HughPickens.com writes: Neil Irwin writes at the NYT that financially literate people like to complain that buying lottery tickets is among the silliest decisions a person could make but there are a couple of dimensions that these tut-tutted warnings miss, perhaps fueled by a class divide between those who commonly buy lottery tickets and those who choose to throw away money on other things like expensive wine or mansions. According to Irwin, as long as you think about the purchase of lottery tickets the right way — purely a consumption good, not an investment — it can be a completely rational decision. "Fantasizing about what you would do if you suddenly encountered great wealth is fun, and it is more fun if there some chance, however minuscule, that it could happen," says Irwin. "The $2 price for a ticket is a relatively small one to pay for the enjoyment of thinking through how you might organize your life differently if you had all those millions."

Right now the Multi-State Lottery Association estimates the chances of winning the grand prize at about 1 in 175 million, and the cash value of the prize at $337.8 million. The simplest math points to that $2 ticket having an expected value of about $1.93 so while you are still throwing away money when buying a lottery ticket, you are throwing away less in strictly economic terms when you buy into an unusually large Powerball jackpot. "I am the type of financial decision-maker who tracks bond and currency markets and builds elaborate spreadsheets to simulate outcomes of various retirement savings strategies," says Irwin. "I can easily afford to spend a few dollars on a Powerball ticket. Time to head to the convenience store and do just that."

Comment Re:^THIS (Score 1) 493

I could understand this in an english class maybe, trying to teach presentation skills. But I actually encountered the same bullshit approach in a fourth-year university lecture on real-time systems. The class was divided into groups of 3, and each were given half a lecture period to teach a section. Besides the fact that many students lacked any presentation skills and had troublesome accents, most groups ran over time. My group never presented because we were one of the last few chapters and there were too few remaining lecture periods.

Comment Re:I just want a monitor (Score 1) 309

Look for "professional" model TVs. I purchased my current panasonic 720p 50" plasma from on online retailer (8 years old now) for a little bit cheaper than a similar sized, normal-featured retail model. It is just as you described, except that instead of dedicated ports, it actually has three interchangeable "input" cards that you can purchase and install on the back. My model came with an HDMI card and a component card, and I additionally purchased a composite card to support older consoles. Still works great. It is similar to the product linked by ihtoit... I'm not at home so I don't have the model number.

Comment Re:Maybe it's because the music industry has adapt (Score 1) 196

Yup. If you hear a new song, chances are very high that you can immediately acquire that song easily and legally through one of many different distribution channels available. If you see a movie trailer for a recently released movie, your only legal option is the theatre. The business model of the two mediums are wildly different.

Comment Re:Great for Canada (Score 1) 98

I also bought my cable modem from an electronics retailer when I signed up with TekSavvy. The ISP will actually give you a discount on account activation if you buy it directly from them for a similar price, which I assume is them passing on the product markup. Things could be better, but it is not so bad as the GP paints it. Definitely better than the US overall.

Comment Re:What? (Score 3, Insightful) 98

What's news-worthy is that, despite releasing these reports, the government refuses to actually do anything about them.

That's not true at all. The current government been undermining Statistics Canada since taking office. Soon the quality of data surrounding these issues will be so poor that they can just say the problem doesn't exist anymore.

Comment Re:Sure (Score 1) 307

This is very true. When my wife first got her BB she was ecstatic about being "in the BBM club" with her friends who had BBs, and this in an era when you only got 75 free texts with a minimal phone plan. BBM wasn't available for either iPhone or Android then, but I definitely would have picked it up if it had been. BB milked their proprietary messaging service as long as it was popular, and only put it on other platforms when their market share started shrinking. Now they fault other companies for doing the same thing.

Now my wife still has a BB but no longer gives a shit about BBM. Just like no one will care about iMessage when the iPhone finally starts losing share, nor will it draw any users back to the iPhone.

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