Hypothetical Situation

[rebeccajo 14]

Say a group of people are playing the Lottery.

They each contribute $2 to the pot every time there is a drawing.

If there are any winnings below $100, the money is 'reinvested' into the next pot.

Say there are 20 people in this group.

Ok.

For the upcoming Lottery drawing, there are now 30 people in the group.

Two of the original twenty dropped out. Eighteen original members remain - twelve are 'new'.

The last drawing was a 'bust'. There was only $3 left to reinvest in this new pot. But nonetheless there was $3 to reinvest and it was 'earned' ONLY from the previous drawing (all pots before that had eventually 'emptied out').

IF this group of people hit the Lottery big-time, how many people get a share? And how much of a share?

Edited January 15, 2009 by rebeccajo

[Jenn! 918]

If I understand correctly, for this jackpot drawing, 18 people were "old" and 12 were "new". The old people contributed (18x2+3)/18=$2.17, while the new people contributed $2 each. Old people should get 2.17/2=1.083 times more than the new people.

Did you win the lottery Becca?

ETA: I think the 2 people who dropped out of the pool are SOL, but I believe that would be debatable.

Edited January 15, 2009 by Jenn!

[rebeccajo 14]

If I understand correctly, for this jackpot drawing, 18 people were "old" and 12 were "new". The old people contributed (18x2+3)/18=$2.17, while the new people contributed $2 each. Old people should get 2.17/2=1.083 times more than the new people.

Did you win the lottery Becca?

ETA: I think the 2 people who dropped out of the pool are SOL, but I believe that would be debatable.

No, but there is a pool at work and I told the guy who is running it that he had to either distribute with each drawing or keep the same people in the pool.

Of course, this is only a problem if several million is involved! But I can easily picture people arguing over it IF several million were involved.

And PS - I think the old people would have a stake in it because of the $3 that was reinvested.

Edited January 15, 2009 by rebeccajo

[Ling Ling 22]

Lottery = a way to make the mathematically challenged pay more taxes.

[mawilson 2,133]

ETA: I think the 2 people who dropped out of the pool are SOL, but I believe that would be debatable.

They contributed 1/20 each of the $3 (which is 1/21 of the total contribution (30x$2+3).)

Therefore, they should get 1/420 of the winnings ($2,380 out of $1,000,000)

And PS - I think the old people would have a stake in it because of the $3 that was reinvested.

Yeah - see above

[w¡n9Nµ7 §£@¥€r 123]

In the latest pool, there was a total of $63, right? (30 * 2 = $60 from the new group of 30 and $3 from the old group carried over.)

The $3 old bucks belongs equally to the original 20. Each of the original 20 have a claim on $0.15 of that money.

The new $60 is from the new 12 and the existing 18. Each of the 30 has a claim on $2 of this $60.

Each of the 18 who are carried over from the previous round have a claim on $2 + $ 0.15 = $2.15

The new $12 only have a claim on $2

The dropped out 2 have a claim on $0.15

So, all winnings have to be distributed between the three in that ratio.

For example if the 'winning' is $100,000.00

Then the new 12 get $3174.60 (2/63 * 100k) each, the old 18 get $3412.70 (2.15/63 * 100k) each, the 2 dropouts get $238.10 (0.15/63 * 200k) each.

[rebeccajo 14]

Thanks, AJ!

*the number of people in our situation is different, but at least I understand the mathematical concept now*

[Uncle Wally 2]

Lottery = a way to make the mathematically challenged pay more taxes.

Beat me to it, brother.

Like they say, state lotteries are the only voluntary tax, and a very clever way to tax poor people.

[one...two...tree 2,762]

If I understand correctly, for this jackpot drawing, 18 people were "old" and 12 were "new". The old people contributed (18x2+3)/18=$2.17, while the new people contributed $2 each. Old people should get 2.17/2=1.083 times more than the new people.

Did you win the lottery Becca?

ETA: I think the 2 people who dropped out of the pool are SOL, but I believe that would be debatable.

No, but there is a pool at work and I told the guy who is running it that he had to either distribute with each drawing or keep the same people in the pool.

Of course, this is only a problem if several million is involved! But I can easily picture people arguing over it IF several million were involved.

And PS - I think the old people would have a stake in it because of the $3 that was reinvested.

I'd have some signed paper that acknowledges everyone who is in on the pool. I could see things getting mired in legal controversy if you all won the lottery but some people who were in the pool before are excluded. There should be some kind of written agreement that everybody signs.

[Lansbury 19]

IF this group of people hit the Lottery big-time, how many people get a share? And how much of a share?

You have to include the lawyers who would be hired in the number of people. What's left to share depends on the lawyers fees.

[NickD 203]

If there were 20 people in the group and each pitched in 2 bucks, would make for a 40 buck pot, should pull a number out of hat, so one gets the 40 bucks while the other 19 get pissed off, but maybe next week.

If you by a lottery ticket with one in 50 million odds of winning, have way far better odds of getting hit with lightning.

[Jasman0717 9]

My ex manager would have demanded his 12 cents. He actually came to one of my employees who was running the lotto pool and wanted his share of the 3 dollars we won in our 25 person pool. This is the same guy that just went and purchased the converter for his 50 year old TV. I am sure his children are really going to enjoy all the money he has been saving for the past 62 years.

[Nessa 23]

actually, they should verify their income and give more to the people that makes less money. that would be what jesus would do.