Lottery Theory – An Outline of the Methods Used in Lottery Drawing

A lottery is generally a type of betting that involves the drawing of predetermined numbers for a prize. While some governments prohibit lotteries, most of them endorse it so far as to organize a state or national lottery. Besides, it is quite popular to see some level of regulation of a lottery at the federal level. The few states that do not allow lotteries are Arkansas, Georgia, Mississippi, Kentucky and Utah.

lottery

The idea behind the lottery is to test the ability of the population to decide on a number drawn by lotteries with a set of criteria, provided they have been selected beforehand. The criteria usually include things like prior probability, chance, pattern, and consistency among many others. This was first applied in the United States with the Federal Lottery Program (FLIP) and was used as basis for the lottery theory.

There are many different schools of thoughts about the lottery, all of them grounded in the standard expected utility theory. For instance, some argue that lotteries encourage social order because the selection of numbers brings together those who would otherwise not have been able to meet each other, resulting in the addition of new members to a community. Others believe that lottery results are predictable given the basic statistical laws of probability. Nevertheless, there are still others who hold that lottery results are unpredictable because of the unavailability of underlying information.