Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

How a statician beat scratch lottery tickets

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » General Discussion Donate to DU
 
Very_Boring_Name Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 05:35 AM
Original message
How a statician beat scratch lottery tickets
Mohan Srivastava, a geological statistician living in Toronto, was working in his office in June 2003, waiting for some files to download onto his computer, when he discovered a couple of old lottery tickets buried under some paper on his desk. The tickets were cheap scratchers—a gag gift from his squash partner—and Srivastava found himself wondering if any of them were winners. He fished a coin out of a drawer and began scratching off the latex coating. “The first was a loser, and I felt pretty smug,” Srivastava says. “I thought, ‘This is exactly why I never play these dumb games.’”

The second ticket was a tic-tac-toe game. Its design was straightforward: On the right were eight tic-tac-toe boards, dense with different numbers. On the left was a box headlined “Your Numbers,” covered with a scratchable latex coating. The goal was to scrape off the latex and compare the numbers under it to the digits on the boards. If three of “Your Numbers” appeared on a board in a straight line, you’d won. Srivastava matched up each of his numbers with the digits on the boards, and much to his surprise, the ticket had a tic-tac-toe. Srivastava had won $3. “This is the smallest amount you can win, but I can’t tell you how excited it made me,” he says. “I felt like the king of the world.”

Delighted, he decided to take a lunchtime walk to the gas station to cash in his ticket. “On my way, I start looking at the tic-tac-toe game, and I begin to wonder how they make these things,” Srivastava says. “The tickets are clearly mass-produced, which means there must be some computer program that lays down the numbers. Of course, it would be really nice if the computer could just spit out random digits. But that’s not possible, since the lottery corporation needs to control the number of winning tickets. The game can’t be truly random. Instead, it has to generate the illusion of randomness while actually being carefully determined.”

== ==

As a trained statistician with degrees from MIT and Stanford University, Srivastava was intrigued by the technical problem posed by the lottery ticket. In fact, it reminded him a lot of his day job, which involves consulting for mining and oil companies. A typical assignment for Srivastava goes like this: A mining company has multiple samples from a potential gold mine. Each sample gives a different estimate of the amount of mineral underground. “My job is to make sense of those results,” he says. “The numbers might seem random, as if the gold has just been scattered, but they’re actually not random at all. There are fundamental geologic forces that created those numbers. If I know the forces, I can decipher the samples. I can figure out how much gold is underground.”

Srivastava realized that the same logic could be applied to the lottery. The apparent randomness of the scratch ticket was just a facade, a mathematical lie. And this meant that the lottery system might actually be solvable, just like those mining samples. “At the time, I had no intention of cracking the tickets,” he says. He was just curious about the algorithm that produced the numbers. Walking back from the gas station with the chips and coffee he’d bought with his winnings, he turned the problem over in his mind. By the time he reached the office, he was confident that he knew how the software might work, how it could precisely control the number of winners while still appearing random. “It wasn’t that hard,” Srivastava says. “I do the same kind of math all day long.”

full story: http://www.wired.com/magazine/2011/01/ff_lottery/all/1
Printer Friendly | Permalink |  | Top
Ichingcarpenter Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 06:13 AM
Response to Original message
1. The Trick.... I love math BTW
The trick itself is ridiculously simple. (Srivastava would later teach it to his 8-year-old daughter.) Each ticket contained eight tic-tac-toe boards, and each space on those boards—72 in all—contained an exposed number from 1 to 39. As a result, some of these numbers were repeated multiple times. Perhaps the number 17 was repeated three times, and the number 38 was repeated twice. And a few numbers appeared only once on the entire card. Srivastava’s startling insight was that he could separate the winning tickets from the losing tickets by looking at the number of times each of the digits occurred on the tic-tac-toe boards. In other words, he didn’t look at the ticket as a sequence of 72 random digits. Instead, he categorized each number according to its frequency, counting how many times a given number showed up on a given ticket. “The numbers themselves couldn’t have been more meaningless,” he says. “But whether or not they were repeated told me nearly everything I needed to know.” Srivastava was looking for singletons, numbers that appear only a single time on the visible tic-tac-toe boards. He realized that the singletons were almost always repeated under the latex coating. If three singletons appeared in a row on one of the eight boards, that ticket was probably a winner.
Printer Friendly | Permalink |  | Top
 
liberal N proud Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 07:07 AM
Response to Original message
2. Did anyone catch the statistics on lottery players
While approximately half of Americans buy at least one lottery ticket at some point, 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. (In a 2006 survey, 30 percent of people without a high school degree said that playing the lottery was a wealth-building strategy.) On average, households that make less than $12,400 a year spend 5 percent of their income on lotteries—a source of hope for just a few bucks a throw.

The poorest are spending 5% of their income on this in hopes of striking it rich. I am not anti lottery but one must realize this is not the way to wealth.

Printer Friendly | Permalink |  | Top
 
Recursion Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 07:43 AM
Response to Reply #2
3. The depressing response
Would you rather they spend that money on twinkies and cigarettes? At least this goes to the schools in most states...
Printer Friendly | Permalink |  | Top
 
ejpoeta Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 07:57 AM
Response to Reply #2
4. to me it is like paying $1 for an entertainment. for a brief period, a person without much
money can dream about what they would do if they won the lottery. If I won $1000/wk for life. While the chances of winning are miniscule, the chance to have that brief respite from crushing poverty is worth $1 a week. My husband buys a lottery ticket a couple times a week. Maybe $5 altogether a week. And he gets a sparkle in his eye when he thinks about what he could do with $90 million dollars. How we could help our town. Be debt free. I tell him we aren't the kind of people who win the lottery. And honestly I don't know how we could handle such a thing. There is a security in living paycheck to paycheck. But it is nice to dream. Like plunking down $10 to see a movie and have 2 hours of an escape.
Printer Friendly | Permalink |  | Top
 
Statistical Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 08:36 AM
Response to Reply #4
5. " I don't know how we could handle such a thing"
You get a fee based money manager (not a commission based) who sets you up on an allowance. Just like a kid except the allowance would be tens of thousands a week. When you die you will still have the $90 million you started with.

Like you said it is unlikely it will ever happen but if it DOES get yourself a fee based (not commission based) certified financial adviser. Then you will have a lottery "paycheck" for the rest of your life.
Printer Friendly | Permalink |  | Top
 
unblock Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 08:59 AM
Response to Reply #2
7. ah, but for too many people, it IS the only way to wealth
poor people who buy lottery tickets might actually be making a rational decision.

yes, the odds are attrocious, but the few bucks a week lost will simply not make a difference in lifestyle, but the (tiny-odds) big payout will. in terms of utility, many consider there to be zero difference in being poor but having survived the week with $5 to spare, vs. being poor having survived the week with $0 to spare. there is no scenario under which the extra $5 will meaningfully change their lifestyle. might as well spend it on a (tiny, tiny) shot at changing their life. or, yes, they could save the money, and after a decade, take their accumulated $2,600 (actually, you would need to subtract any foregone lottery winnings, as many of these games pay out small amounts with reasonable frequency to keep regular players feeling like winners) and... do what with it, exactly?

the fact that lottery customers are disproportionately poor suggests strongly that the lottery is exploiting this fact, and instead of making america the "land of opportunity" it's billed as, with real jobs with real potential, it's really just making the lottery the only real "opportunity" many people have, and charging them 50% for that opportunity.

Printer Friendly | Permalink |  | Top
 
Statistical Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 08:42 AM
Response to Original message
6. Nice he protected the state from their own flaw.
" Instead of trying to get Zufelt (lottery administrator) to return his calls, Srivastava (guy who cracked the system) decided to send him a package. He bought 20 tic-tac-toe tickets and sorted them, unscratched, into piles of winners and losers. Then, he couriered the package to Zufelt along with the following note:

In the enclosed envelopes, I have sent you two groups of 10 TicTacToe tickets that I purchased from various outlets around Toronto in the past week… You go ahead and scratch off the cards. Maybe you can give one batch to your lottery ticket specialist. After you’ve scratched them off, you should have a pretty solid sense for whether or not there’s something fishy here.

The package was sent at 10 am. Two hours later, he received a call from Zufelt. Srivastava had correctly predicted 19 out of the 20 tickets. The next day, the tic-tac-toe game was pulled from stores."
Printer Friendly | Permalink |  | Top
 
OneTenthofOnePercent Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 09:08 AM
Response to Original message
8. “People often assume that I must be some extremely moral person"...
“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.”

LOL, this guy is awesome. He figures that he can only make about $600/day ripping off the lotto (driving around buyng tickets) and that his time as a geo-stat is more valuable. Epic.
Printer Friendly | Permalink |  | Top
 
KillCapitalism Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 11:43 AM
Response to Original message
9. It's silly to play the lottery.
You're chances of winning are so slim that you're more likely to be mauled to death by a Polar Bear while taking a stroll on South Beach in Miami.
Printer Friendly | Permalink |  | Top
 
BlackHoleSon Donating Member (89 posts) Send PM | Profile | Ignore Wed Feb-02-11 11:53 AM
Response to Reply #9
10. What are the odds of you being ... you? n/t
Printer Friendly | Permalink |  | Top
 
Very_Boring_Name Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 07:23 PM
Response to Reply #9
11. As others have mentioned, it's not about the odds. It's about entertainment
I like playing the lottery, it's a cheap way to have some fun even if the odds are horrible.
Printer Friendly | Permalink |  | Top
 
cynatnite Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Feb-03-11 02:24 PM
Response to Reply #9
14. I doubt anyone who actually won the lottery would agree with you...
I won $10, BTW. :)
Printer Friendly | Permalink |  | Top
 
RagAss Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 07:27 PM
Response to Original message
12. Lotto?...Better chance of getting hit in the ass by a meteorite !
Printer Friendly | Permalink |  | Top
 
cbdo2007 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Feb-03-11 02:22 PM
Response to Original message
13. This was very interesting! It's amazing how many things can be beat with a good eye...
and statistics and stuff.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Wed May 01st 2024, 10:56 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » General Discussion Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC