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Statistician Cracks Code For Lottery Tickets

Hugh Pickens writes writes "Lottery Post has an interesting story about Mohan Srivastava, an MIT educated statistician who became intrigued by a particular type of scratch-off lottery ticket called an extended-play game — sometimes referred to as a baited hook — that has a tic-tac-toe grid of visible numbers that looks like a miniature spreadsheet. Srivastava discovered a defect in the game: The visible numbers turned out to reveal essential information about the digits hidden under the latex coating. Nothing needed to be scratched off — the ticket could be cracked if you figured out the secret code. Srivastava's fundamental insight was that the apparent randomness of the scratch ticket was just a facade, a mathematical lie because the software that generates the tickets has to precisely control the number of winners while still appearing random. 'It wasn't that hard,' says Srivastava. 'I do the same kind of math all day long.'"

74 of 374 comments (clear)

  1. Small typo by benedictaddis · · Score: 4, Funny

    "Lottery Post has an interesting story about Mohan Srivastava, a *millionaire* MIT educated statistician" Fixed that for you

    1. Re:Small typo by spun · · Score: 4, Interesting

      Some people are not motivated primarily by greed. I'm guessing many people who go to MIT and become statisticians fall into that category, I mean, if they have that mindset and level of intelligence they could easily have gone to a business school and gone on to make millions. I'm not saying scientists, engineers and mathematicians are saints, they can be as petty as anyone, but if they wanted to be millionaires, they would have chosen different careers.

      --
      - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
    2. Re:Small typo by c6gunner · · Score: 4, Funny

      How do you tell the difference between an MIT mathematician and a smart MIT mathematician? One talks to the media, the other is a millionaire.

    3. Re:Small typo by danlip · · Score: 3, Informative

      from TFA:

      "Once I worked out how much money I could make if this was my full-time job, I got a lot less excited," Srivastava says. "I'd have to travel from store to store and spend 45 seconds cracking each card. I estimated that I could expect to make about $600 a day. That's not bad. But to be honest, I make more as a consultant, and I find consulting to be a lot more interesting than scratch lottery tickets."

    4. Re:Small typo by yuriyg · · Score: 2

      This information looks more useful to the convenience store owners and clerks than to MIT educated statisticians. Even knowing the system, it's very hard to just stand there and pick out the tickets that you like, the store clerk would usually just rip off the first ticket from the roll. On the other hand, the clerks themselves have a lot of time to study these. I can image a pretty profitable scheme where the clerk would sell you certain tickets for extra 50% or so...

    5. Re:Small typo by dimeglio · · Score: 2

      The MIT entry exam consists of giving away all you possessions before being admitted. Hence, the statistically low number of affluent MIT educated statisticians. (Un)fortunally, I failed that exam.

      --
      Views expressed do not necessarily reflect those of the author.
    6. Re:Small typo by artor3 · · Score: 4, Insightful

      Statistics isn't hard? Let me guess, you base that on a couple of college courses? As an engineer, I've frequently run into statistical problems that neither I nor my coworkers have even the foggiest notion of how to approach. Things can get really ugly when you start dealing with the real world.

      You're certainly right about one thing though - most mathematicians do the math because they enjoy it. Those aforementioned problems that were beyond me? I typically recruit some mathematicians and physicists I know from college, and they solve them for free.

    7. Re:Small typo by MoonBuggy · · Score: 5, Informative

      He comments on the issue in TFA:

      "I remember thinking, I'm gonna be rich! I'm gonna plunder the lottery!" he says. However, these grandiose dreams soon gave way to more practical concerns. "Once I worked out how much money I could make if this was my full-time job, I got a lot less excited," Srivastava says. "I'd have to travel from store to store and spend 45 seconds cracking each card. I estimated that I could expect to make about $600 a day. That's not bad. But to be honest, I make more as a consultant, and I find consulting to be a lot more interesting than scratch lottery tickets."

      Seems like a decent, down-to-earth guy; he's pretty well off already (six figure salary, if he's making more than $600/day), so I'm sure it's a prospect that was easier for him to forego than most, but it looks like he's got a good balance between the comfort of money and enjoyment of his work.

    8. Re:Small typo by c6gunner · · Score: 2

      I didn't know MIT was located in Vatican City ...

    9. Re:Small typo by Pentium100 · · Score: 2

      From TFA:

      His next thought was utterly predictable: "I remember thinking, I'm gonna be rich! I'm gonna plunder the lottery!" he says. However, these grandiose dreams soon gave way to more practical concerns. "Once I worked out how much money I could make if this was my full-time job, I got a lot less excited," Srivastava says. "I'd have to travel from store to store and spend 45 seconds cracking each card. I estimated that I could expect to make about $600 a day. That's not bad. But to be honest, I make more as a consultant, and I find consulting to be a lot more interesting than scratch lottery tickets."

      So, for him, the lottery was not profitable and interesting enough.

    10. Re:Small typo by zill · · Score: 2

      Obviously he needs a cover story in case IRS makes inquiries about his yachts.

    11. Re:Small typo by PopeRatzo · · Score: 2

      I mean, if they have that mindset and level of intelligence they could easily have gone to a business school and gone on to make millions.

      Middle management and the front seats of taxicabs are littered with the bones of "intelligent" people who've gone to business school. I would bet the percentage of B-school grads who "make millions" is a little lower than you may think.

      I've seen the haunted looks on the poor souls who are about to graduate from the business school at my (rather prestigious) institution. I think I'd rather be flayed alive than be them.

      The best advice for someone who wants to "make millions" came from the Buddha.

      --
      You are welcome on my lawn.
    12. Re:Small typo by PopeRatzo · · Score: 5, Funny

      I find consulting to be a lot more interesting than scratch lottery tickets.

      Jesus, what a choice to have to make: consulting or scratch lottery tickets.

      Better to throw oneself off a cliff.

      --
      You are welcome on my lawn.
    13. Re:Small typo by icebraining · · Score: 4, Interesting

      The obvious solution is to make a webpage to crack the code, and then make a deal with someone who has a smartphone but makes much less than $600/day.

    14. Re:Small typo by Zelgadiss · · Score: 3, Insightful

      Wow defensive much...

      He is just stating statistics (at least those that he bumps into in his line of work) isn't easy, and what's wrong with asking his "former peers" for help if they don't mind.

      Where did he say he is an Excellent engineer?
      What makes you think he is obsessed with money? It's a job of course you do it for money.
      Prestige? You speak as if academics don't have any prestige to their jobs.

    15. Re:Small typo by Daniel+Dvorkin · · Score: 5, Funny

      The best advice for someone who wants to "make millions" came from the Buddha.

      If you meet the millionaire on the road, kill him?

      --
      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
    16. Re:Small typo by Max+Littlemore · · Score: 4, Insightful

      Well you're an arrogant arsehole, aren't you? You've just accused the guy of a bunch of stuff you've derived from your own assumptions, you appear to deride the guy as being obsessed with prestige and then you go on to blow your own trumpet.

      You come off as an arrogant and hypocritical prick. And while you might be good a mathematics, I would hazard a guess you're not much use for anything else... case in point: you deride people who, knowing that they don't have the skills to do a task on their own, call on friends for help. Going it alone is generally a less successful strategy if the sum of human achievement is anything to go by.

      --
      I don't therefore I'm not.
    17. Re:Small typo by publiclurker · · Score: 2

      Why sell the tickets. I'd just keep an eye on the next available tickets, and it they were winners, buy them myself. If they were not winners, wait for someone else to buy the losers. Since I'm already at the store, my time is essentially paid for.

    18. Re:Small typo by adamdoyle · · Score: 2

      That would be a cool augmented reality app (kindof like that camera-phone sudoku solver app that OCR'd the numbers and overlaid the missing numbers in their correct boxes)

    19. Re:Small typo by sirambrose · · Score: 2

      The lottery system probably logs ticket sales and ticket checks to a central server. Attempting to check tickets before buying them would probably raise a red flag.

    20. Re:Small typo by LordNacho · · Score: 2

      I don't know what state you are in, but here in California, they can scan the barcode on the back to find out if the tickets are winners or not. You don't even have to do any math.

      WTF? Is that not a problem for people? Surely the guys in the shop keep all the winners?

    21. Re:Small typo by EdIII · · Score: 2

      I don't see how you could make any money on your own with the complicity of the store clerks. Those tickets are in rolls which present a number of problems:

      1) How long does it take to scan a roll for winning tickets past a certain amount?
      2) How do you maintain the integrity of the roll since you would be pulling out individual tickets?
      3) Employees are usually barred from claiming tickets themselves and I have a hunch that a conspiracy to game the lottery like that is illegal.
      4) The lotteries have already gotten into trouble before and had PR scandals when they *knew* that all the big prize tickets were already sold, but kept selling losing tickets anyways. How would a store clerk be in any *less* trouble by selling tickets guaranteed to lose?

      Cracking this code is interesting, but useless. All of tickets obviously represent more revenue than the prize amounts and under most circumstances, especially the legal ones, you would have to spend the money first to crack the code.

      At most here all I see is way to not have to scratch the ticket to know you won. Which would be pretty funny since you would hand the ticket right back to the cashier and he would need to scratch it for the code to validate the ticket. You could make yourself seem like a psychic :)

    22. Re:Small typo by lxs · · Score: 3, Insightful

      Spoken like a true parapsychologist. More bad science comes out of researchers underestimating statistics than out of all other sources combined.

    23. Re:Small typo by dintech · · Score: 2

      This is all very interesting but if you want to earn the big bucks, you start your own lottery.

    24. Re:Small typo by Vanderhoth · · Score: 2

      That doesn't mean the CRA won't take a closer look at your normal income and start finding things to over bill you for. When I was a young contractor I mistakenly claimed $100 income one year (As part of a larger sum), but ended up not billing for the final $100 until January 1st. That unleashed a whole shit storm of Audits, CRA lies and late payment interest fees.

      I've been audited every year since. I haven't even been a contractor for over 4 years, I work for the Government and I'm still audited because I'm an evil tax evading thief.

    25. Re:Small typo by tophermeyer · · Score: 2

      Hey, there's also a great deal of entertainment value to playing the lottery.

      Once as a kid during a summer job I made that joke when I saw a truck driver playing a lotto ticket. The response he gave me was that it was only costing him $2-$3 dollars a week, and in exchange he had a plausible hope that he might someday win millions of dollars and never have to work again. To him, that was worth the couple of bucks a week.

      Also, there is a lot more to gambling than mathematical ignorance. I'll hit a casino once in a while and I almost certainly drink enough free booze to cover my losses.

  2. breaking news by uvajed_ekil · · Score: 5, Funny

    This just in, MIT-educated statistician Mohan Srivastava has retired suddenly at a young age and is not taking questions.

    --
    This is a hacked account, for which the owner can not be held responsible.
    1. Re:breaking news by Anonymous Coward · · Score: 5, Interesting

      This just in: MIT-educated statistician Mohan Srivastava was sued for DMCA violations for demonstrating a trivial security flaw in lottery tickets.

    2. Re:breaking news by Anonymous Coward · · Score: 2, Funny

      This just in - Enrollment in MIT's Statistics course increases 600 percent.

  3. Horatio Caine says by Anonymous Coward · · Score: 3, Funny

    Now that's *sunglasses* the ticket.

    YEAAAAAAAAAAAAAAAAAAAAAH!

    1. Re:Horatio Caine says by spun · · Score: 2, Insightful

      Where is the "Stab that guy in the face over the Internet" device when you need it?

      --
      - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
    2. Re:Horatio Caine says by bigstrat2003 · · Score: 2

      Looks like someone found his wit *sunglasses* a little too sharp.

      YEAAAAAAAAAAAAAAAAAAAAAAAAAAAAH!!!

      --
      "16MB (fuck off, MiB fascists)" - The Mighty Buzzard
  4. When was the last time you picked.... by modmans2ndcoming · · Score: 2

    When was the last time you were allowed to look through and then pick the scratch off tickets you wanted from a spindle of tickets behind the counter.

    While the game is flawed, there is no real way to get only the winners.

    1. Re:When was the last time you picked.... by Anonymous Coward · · Score: 2, Funny

      Yeah, no way a guy named Mohan Srivastava would know anyone who works in a 7-eleven.

    2. Re:When was the last time you picked.... by Charliemopps · · Score: 2

      Exactly, given the right cellphone app to decode them, a gas station attendant could clean up.

    3. Re:When was the last time you picked.... by LordKronos · · Score: 4, Informative

      RTFA

      "Lots of people buy lottery tickets in bulk to give away as prizes for contests," he says. He asked several Toronto retailers if they would object to him buying tickets and then exchanging the unused, unscratched tickets. "Everybody said that would be totally fine. Nobody was even a tiny bit suspicious," he says. "Why not? Because they all assumed the games are unbreakable. So what I would try to do is buy up lots of tickets, run them through my scanning machine, and then try to return the unscratched losers.

    4. Re:When was the last time you picked.... by Mistlefoot · · Score: 4, Insightful

      So:

      Step 1) Be a retailer, or get a job for a retailer, selling lottery tickets. This would get past your "there is no real way to get only the winners"
      Step 2) Take all the scratched tickets that people throw away onsite, and scan them for hints as to how to pick winners.
      Step 3) Buy a bunch of probable winners to see how accurate you are, and if you are accurate, profit.

      Now a few things come to mind.
      Many people like to buy the "new" tickets as they seem to "win" more often. This would be normal if took a few weeks for retailers to get a handle on how to pick the winners. You win more often when "chance" is in play, and less often when the probably winners have been weeded out.

      It would also explain how retailers cash a high percentage of winners, in Canada at least, were this has been in the news for the past few years.
      Here is one such article, and note, this has led to changes in Canada. Seemingly not good enough.
      http://www.canada.com/vancouversun/story.html?id=4be28910-9cec-4785-b471-f37849a29008&k=17633

    5. Re:When was the last time you picked.... by telso · · Score: 2

      Actually, it has nothing to do with retailers in Canada being a high percentage of winners. What actually happened was that when a customer who won a large prize handed in his or her ticket and the machine beeped, the retailer told the customer he or she won a free ticket and then took the multi-figure winning ticket to the lottery commission pretending he or she bought it. It was plain old fraud, and a number of retailers are currently under indictment for it. (Also, as your article states, the tickets in questions were draws, not scratch tickets.)

  5. Old News by Anonymous Coward · · Score: 2

    This was in Wired Magazine earlier last month.

    http://www.wired.com/magazine/2011/01/ff_lottery/all/1

    1. Re:Old News by Yoik · · Score: 2

      Even older than that. He's Canadian, and CBC reported on it in 2006:
      http://www.cbc.ca/consumer/story/2006/11/21/lottery-probe.html

  6. Seems to be the same as the Wired Article by joeflies · · Score: 5, Informative

    The same article appeared in Feb 2011 issue of Wired even though Lottery Post doesn't seem to go out of its way to attribute the author and cite the issue properly.

    1. Re:Seems to be the same as the Wired Article by colsandurz45 · · Score: 2

      You're right. I read the this article in wired earlier this week! Even all the images are the same and they didn't remove this line from TFA: "In one of his most recent trials, conducted at the request of Wired," This is real copyright infringement.

    2. Re:Seems to be the same as the Wired Article by Riktov · · Score: 2, Funny

      Copying others' work without attribution, in a forum dedicated to the idea of reaping riches without working for it? I would have never imagined!

  7. lawsuit in... by Odinlake · · Score: 2

    lawsuit coming in, 5, 4, 3 ....

  8. Coolest part of the article by artor3 · · Score: 5, Interesting

    After calculating that his average winnings would come out to $600 a day:

    "People often assume that I must be some extremely moral person because I didn't take advantage of the lottery," he says. "I can assure you that that's not the case. I'd simply done the math and concluded that beating the game wasn't worth my time."

    Moral of the story for those who play the lotto: Even if you figure out how to break the game, it still isn't worth playing.

    1. Re:Coolest part of the article by rm999 · · Score: 2

      I'd guess he would rather expend his energy contributing to society rather than cheating a lottery. It's the difference between creating money and creating wealth. The people who concentrate on the latter tend to be more successful in the long run.

    2. Re:Coolest part of the article by Anonymous Coward · · Score: 2, Insightful

      Do you know any stores that will allow you to inspect their scratch-off lotto tickets to pick out the specific ones on the roll you'd like to buy? How would you pull this off?

    3. Re:Coolest part of the article by h4rr4r · · Score: 2

      Wow, you are naive. The name Bernie Madoff mean anything to you? And don't act like that finally caught up to him, he protected everyone else and will probably be released in 10 years when he is sick and old. Maybe High Frequency trading rings a bell? Perhaps you have heard of the tricks Microsoft used to gain and keep a desktop monopoly?

    4. Re:Coolest part of the article by artor3 · · Score: 4, Insightful

      Sure, but those are big crooks. Ripping off the lotto to the tune of $150k a year makes you a small crook, and small crooks do big time.

    5. Re:Coolest part of the article by glwtta · · Score: 2

      it puts you in the top 20% of households in the U.S.A.

      Wouldn't that put you in the top 3% or so? Only need $90k for top 20%.

      --
      sic transit gloria mundi
    6. Re:Coolest part of the article by drsmithy · · Score: 2

      I'd guess he would rather expend his energy contributing to society rather than cheating a lottery.

      No need to guess:

      "People often assume that I must be some extremely moral person because I didn't take advantage of the lottery," he says. "I can assure you that that's not the case. I'd simply done the math and concluded that beating the game wasn't worth my time."

      It's the difference between creating money and creating wealth. The people who concentrate on the latter tend to be more successful in the long run.

      Most of the people who got out of the most recent GFC best off were most certainly in the game of "creating money" rather than "creating wealth". Ie: bankers.

    7. Re:Coolest part of the article by MoonBuggy · · Score: 2

      Charges for what, exactly?

    8. Re:Coolest part of the article by c0lo · · Score: 2

      I also am not naive enough to believe that the truly rich got that way by creating wealth when we have clear evidence that for a significant fraction this is not the case.

      See... go again and read the post you are replying to... Here's the snippet I think is relevant:

      It's the difference between creating money and creating wealth. The people who concentrate on the latter tend to be more successful in the long run.

      Are you sure you aren't confusing "being successful" with "being rich"?
      E.g. would you consider Mother Theresa unsuccessful?

      --
      Questions raise, answers kill. Raise questions to stay alive.
    9. Re:Coolest part of the article by linuxrocks123 · · Score: 2

      Oddly enough, plundering the lottery isn't very different from robbing charities. In most cases, lottery proceeds are directly used to fund public schools. Methodically ripping off public schools for a living is, in my opinion, ethically problematic. Of course, ripping off poor, uneducated people to fund public schools is also, in my opinion, ethically problematic.

      --
      vi ~/.emacs # I'm probably going to Hell for this.
    10. Re:Coolest part of the article by coliverhb · · Score: 3, Funny

      Mother Theresa was a fraud, and for that matter died after having amassed a lot of money that NEVER went to helping the poor and needy. But, yes, she was successful. Hell, she even convinced you and at least 1.166 billion other people that she was a saint!

  9. Re:Old story... by h4rr4r · · Score: 4, Funny

    A week is not old for slashdot, I can see you are new here so we can let it slide this once. In the future you should probably also not read the articles.

  10. Re:You don't have to be non-random for fixed winne by jschultz410 · · Score: 4, Informative

    The problem is that he reverse engineered their deterministic process for generating winners and losers and then was able to pick out the winning cards based on the partial information they revealed. The order in which they are printed doesn't really matter. Given any random subset of the cards he could pick the winners out of them at a much higher % than he should have been able to if they were actually random.

    Sounds to me like they should figure the game out in such a way that a real random number generator will generate winners and losers at the desired rates on average and then just rely on the law of averages / large numbers to give them their desired take.

    Forgot to login, sorry for the dup ... :(

  11. Re:you just need to crack the UPC code on the back by BasilBrush · · Score: 2

    TFA says otherwise.

  12. Why major in math? by Anonymous Coward · · Score: 4, Funny

    Because I am calling you from my boat, BITCH!

  13. He figured out the pattern from 2 tickets by mbenzi · · Score: 4, Interesting

    I read the Wired article; the amazing thing is he did this with sample size of two.

  14. If you'd Read TFA ... by Ungrounded+Lightning · · Score: 4, Insightful

    How do you tell the difference between an MIT mathematician and a smart MIT mathematician? One talks to the media, the other is a millionaire.

    If you'd read the fine article, you'd have seen that he calculated how much he'd earn by using his system and how long it would take - and found that it was far lower than his consulting pay rate. So if he spent time doing it rather than his day job he'd be taking a pay cut.

    Sounds to me like a GOOD mathematician - one who applies math to ALL the aspects of the problem and comes to the right conclusion.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    1. Re:If you'd Read TFA ... by trentblase · · Score: 4, Interesting

      Of course he applied economics only halfway. He could have sold the algorithm to someone with lower opportunity cost. Someone who makes $100 a day should be willing to split the $600 with him.

    2. Re:If you'd Read TFA ... by haystor · · Score: 2

      He just got his name spread across the country for the price of selling the algorithm which will surely be immediately changed.

      --
      t
  15. Lottery: the regressive tax by AaronParsons · · Score: 2

    the vast majority of tickets are purchased by about 20 percent of the population. These high-frequency players tend to be poor and uneducated, which is why critics refer to lotteries as a regressive tax.

    And yet a Massachusetts auditor for the lottery says of people gaming the lottery system:

    The problem is that when there's a lot of money involved, unscrupulous people are always going to be looking for new ways to game the system, or worse.

    Exactly. So why don't I feel sorry for them?

  16. Re:you just need to crack the UPC code on the back by SkyDude · · Score: 2

    In Massachusetts, and I presume other states, there's a limit on scanning the barcodes on scratch tickets. In Mass, the limit is three scans per day if the tickets are not winners. After three losing scans, the lottery machine shuts down for a period or until the merchant calls lottery HQ for a reactivation code. The merchant may also get a call from the security dept at lottery HQ to 'splain why the machine shut down.

    --
    == First cross river, then insult alligator.
  17. Re:you just need to crack the UPC code on the back by BasilBrush · · Score: 2

    Correction: YOU and some others don't read the article. And you lower the quality of the site enormously by commenting without doing so. Plenty of other people do read the article first, especially the ones who get modded up.

    Don't judge others by your own low standards.

  18. The flaw in the "system" by dimer0 · · Score: 3, Insightful

    After playing quite a few of these games, I have seen this pattern too. I can look at a ticket (I'm a fan of the crossword game), and look for the less-common letters, and know basically whether or not I stand a good chance of winning. The problem here though - let's say I buy 5 tickets and don't scratch them because they all appear to be losers. What gas station have you been to that will take them back, or exchange for other tickets? None. You're buying the next 5 tickets off the roll. So what if you know that 1 out of the 5 has a really good shot at winning - you already paid for the other 4 and lost.

  19. The real humor by ComfortablyAmbiguous · · Score: 2

    The real humor from TFA comes from reading the comments that follow it. A quick read through tells you that the lottery commission has nothing to fear.

  20. Charity by Myopic · · Score: 3, Interesting

    If I were him, I might have gone down to the local soup kitchen and told a couple homeless people about it, and given them each a few tickets to demonstrate it. That community could have benefited for a few weeks or months before the lotto figured it out.

    1. Re:Charity by Riktov · · Score: 2

      Just make sure you do it at a soup kitchen in an area where you'll never go or be recognized again. Last thing you want is a bunch of winos hounding you down yelling "Give us more of those lotto tickets!"

  21. Story plagiarised from WIRED by 1u3hr · · Score: 4, Informative
    "WIRED " has an interesting story". Fixed that for you.

    Yet again, Slashdot links to some parastic site that copied the original story rather than the source: http://www.wired.com/magazine/2011/01/ff_lottery/all/1.

    1. Re:Story plagiarised from WIRED by 1u3hr · · Score: 5, Informative
      Also, this all happened eight years ago. Here's an article from 2006:

      http://www.cbc.ca/consumer/story/2006/11/21/lottery-probe.html

      Toronto statistician Mohan Srivastava also discovered a way the tickets could be decoded to predict a winner on the game "Tic Tac Toe" nearly three years ago. Srivastava would look at the numbers on the ticket, and if a sequence of numbers was lined up in tic-tac-toe fashion and were not repeated anywhere else on the ticket, it was likely a winner. "If someone explained the trick to you, I think, I actually know, a child could do it," Srivastava said. He contacted the OLG about the trend, and while the corporation recalled unsold tickets of the game, it never went public with the information.

  22. A consultant. by Mateorabi · · Score: 2

    He's a consultant. The first thing I though reading this article was that he's fishing for customers. Why break the lotto for $600 a day when you can get yourself hired by the lotto companies to check their work by showing them how weak their current auditors are?

    --
    "You saved 1968." - Ms. Valerie Pringle to the crew of Apollo 8

  23. Reminds me of a Junior High experience by Ecuador · · Score: 2

    Back in (Greek) Junior High we went for a one-day school trip to an island (Poros IIRC). The day plan consistend of letting a few dozens of 14-15 year-olds roam around the town unattended. Obviously, one of my group's first stops was at an Arcade, to spend some coins on things like Cadillacs and Dinosaurs or NBA Jam. Another group of friends called us to a back room to check something out. There was an electronic (electromechanic?) gambling machine that had a roullette (but with fewer segments than the classic) and you could bet on outcomes. I hadn't seen such a machine since my usual Arcades in the city were just, well, Arcades, so I was intrigued and stood by to watch some of my friends play. Born a geek, even before any formal statistics training, I started analyzing the game and the betting possibilities and I soon realized that - woops - the designers allowed for multiple bets per cycle, but had not calculated the combined odds properly, so there was a combination of bets that would give the player an advantage. So I told my friends to stop betting randomly and I showed them a winning strategy that would give them on average something like a quarter (the equivalent 20 or 50 drachma coin that arcades accepted back then) for every 4 or so (don't remember specifics) plays. After explaining, I oversaw a few rounds and then left. Yes, money was useful for me as well, but I had calculated the expected payout and judged that I had stayed enough at the arcade, so spending the rest of the day outside (and finding a good restaurant) was worth more for me than that amount.
    Sure enough, after several hours, we all met back at the boat. The 3-4 kids that had stayed at the arcade had each made around 2-3k drachma (I guess something like $20 of early 90's USD), which was not insubstantial for us back then (since I remember I felt about 20% regret for not staying myself, given the fact that I had not found such a great restaurant - hehe).
    Anyway, the moral of the story is that gambling games are not usually designed by PhD's, although I would have expected at least big lotteries like those in TFA to be designed by groups of excellent statisticians. And also that winning a gambling game is not always worth your time.

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    Violence is the last refuge of the incompetent. Polar Scope Align for iOS