REPORT

OF
LOTTERY
CALCULAT
ION
LOTTERY
MATHEMATICS
Contents

1.0 INTRODUCTION.....................................................................................................................................3

2.0 METHODOLOGY.....................................................................................................................................4
2.1 PROBABILITY......................................................................................................................................4
2.2 COMBINATION...................................................................................................................................4
2.3 PSEUDO-CODE...................................................................................................................................4

3.0 PRESENTATION OF DATA.......................................................................................................................5

4.0 ANALYSIS & INTERPRETATION...............................................................................................................6

4.1 CALCULATE THE LARGEST NUMBER OF POSSIBLE TICKETS................................................................6
4.2 CALCULATE THE PROBABILITIES THAT WINNING EACH PRIZE...........................................................6
4.3 CALCULATE THE PROBABILITY OF GETTING CHANCE OF A WINNING TICKET....................................7
4.4 CALCULATING THE REVENUE OF THE LOTTERY..................................................................................7
4.5 PSEUDO CODE...................................................................................................................................8
4.6 SUGGESTION TO GET THE AVERAGE OF WINNING TICKETS............................................................10

5.0 GENERAL DISCUSSION.........................................................................................................................10

6.0 CONCLUSION.......................................................................................................................................11

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1.0 INTRODUCTION
Lottery mathematics is used here to mean the calculation of the probabilities in
a lottery game. The lottery game used in this is one in which one selects 5 different winning
letters from the letters A-Z randomly, and hopes that as many of those 5 as possible match the
5 that are randomly selected from the same pool of 26 letters in the "draw"..

On each ticket 5 different letters must be appeared .Also each ticket has a different
combination of letters printed on it. The “draw” will be on once a week & there 5 winning
letters are randomly chosen.

Each person buying a ticket for the lottery must pays for it & according to the
selected winning letters appear on their ticket, the prizes are awarded. The order of the letters
does not matter for winning prizes.

The target of this report is mainly to analyze that how the prizes be divided & how
the tickets spread out in each prizes. When calculating those algorithms, probability methods &
combination methods are directly used.

Have to identify new scheme based criteria for lottery calculations. So the methods
are implemented using pseudo-code to clearly grab the main points .The report discusses about
these new schemes.

These data are useful when comes to the cost effectiveness of the lottery for the
people who associate with.

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2.0 METHODOLOGY
2.1 PROBABILITY
The probability of an outcome of a particular event happening is the chance or
likelihood of it happening. We all have an intuitive understanding of whether something is likely
to happen, but mathematically we can determine how likely something is exactly.

This is the standard way to calculate probability. You count up the total number of
outcomes that match the condition you are interested in and divide it by the total number of
outcomes that could possibly happen:

Probability of X happening = Total number of outcomes in which X happens

Total number of possible outcomes

Two events are said to be independent if they cannot influence or affect each other.

2.2 COMBINATION
A combination is the selection of a certain number of objects taken from a group of
objects without regard to order.

2.3 PSEUDO-CODE

Pseudo-code is an artificial and informal language that helps programmers to develop

algorithms. Pseudo-code is a "text-based" detail (algorithmic) design tool.

The rules of Pseudo-code are reasonably straightforward. All statements showing

"dependency" are to be indented. These include while, do, for, if, switch.

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3.0 PRESENTATION OF DATA
Lucky letters in a lottery is a selection of 5 different letters chosen at random from
the alphabet letters A-Z.As appear on each ticket; there will be printed different combinations
of 5 letters. Weekly 5 winning letters are randomly chosen from a draw which includes all 26
letters or desired letters.

PRIZES GIVING CRITERIA

All prizes are cash rewards & awarded depending on the number of letters on ticket,
which map with the winning letters. Here is the value of prizes relevant to the number of
winning letters:

Number of matching letters 3 4 5

Prize 10,000 50,000 100,000

IMPLEMENTED FUNCTIONS

Combinations(array[],n) - gives all combinations of size n from elements in array

randSample(array[],m) - gives random sample of size m from elements in array

equalElements(array1[],array2[]) – gives number of equal elements in both array1 and array2

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4.0 ANALYSIS & INTERPRETATION

4.1 CALCULATE THE LARGEST NUMBER OF POSSIBLE TICKETS

The tickets are printed with a selection of 5 different letters from the letters
A-Z inclusive. Each ticket has a different combination of letters printed on it.

So the largest number of tickets that could be sold in a week explained with
calculation below in choosing 5 from 26.

Starting with a selection of 26 A-Z letters, there are 26 different but equally
likely ways of choosing the first letter selected from the selection of letters. When the selection
comes to the second letter, there are now only 25 letters left .Because the letters already
selected are not returned for the selection again. Thus for each of the 26 ways of choosing the
first letter there are 25 different ways of choosing the second. On selection the third letter
there are 24 ways of choosing it. This continues until the fifth letter has been selected, giving
26 !
the final calculation, 26×25×24×23×22, which can also be written as .The last step is to
( 26−5 ) !
understand that the order of 5 letters is not significant. That is, if a ticket has the letters A,B,C,D
& E, it wins as long as all the letters A-E are drawn, no matter what order they come out in.
According, given any set of 5 letters, there are 5×4×3×2×1 = 5! In which they could be drawn.
26 !
Dividing by 5! or more generally as from the combinations formula
( 26−5 ) !

26 !
n=26 & k=5 ; 26C5= 5! (26−5 ) ! =65780 gives the largest

number of tickets that could be sold in a week.

4.2 CALCULATE THE PROBABILITIES THAT WINNING EACH PRIZE

Considering a week when all the possible tickets are sold, odds of getting
probabilities that winning each prize are calculated below.

To calculate probability winning each prize, must divide the number of

combinations producing the given result by the total number of possible combinations.

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 At a weekly draw, 5 lucky letters are drawn from a range of 26 letters A-Z. If
the 5 letters on a ticket match the lucky letters drawn, the ticket holder is a winner for the
grand prize of the lottery. This is true no matter in which order the letters appear.

The numerator equates to the number of ways one can select the winning
letters multiplied by the number of ways one can select the losing letters.

Number of
matching Approximate Decimal
Prize letters(n) Calculation Exact Probability Probability

10,000 3 0.032

50,000 4 0.0016

100,000 5 0.000015
The probability of winning a ticket 0.033615
For a prize of Rs. M which can win from a n number of lucky letters printed
on a ticket (for example, if 3 of your letters printed on the lottery match the 5 lucky letters
drawn, then n=3), there are 5Cn ways of selecting n winning numbers from the 5 lucky letters.
This means that there are 5-n losing letters, which are chosen from the 21 losing letters in 21C(5-n)
ways. So the total number of combinations giving that result is, as stated above, the first
5C n ×21 C(5−n)
number multiplied by the second. The expression is there for which varies
26C 5
from the value n. The following table gives the probability that winning each prize; Figure 4.1

4.3 CALCULATE THE PROBABILITY OF GETTING CHANCE OF A WINNING

TICKET
A chance of a winning comes from the number of matching letters with the lucky
letters in the draw. So a lottery containing 3,4 or 5 winning numbers selects as a winning ticket.
To get the probability of winning a prize, want to sum the probabilities that winning each prize.

As Figure 4.1 shows, the chance of a ticket winning a prize approximately 0.033 which is
roughly 1 in 30.

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4.4 CALCULATING THE REVENUE OF THE LOTTERY
Assuming a time, when all possible tickets are sold & all cash prizes are given away, here
is the calculation for the revenue of the lottery.

The income received from the lottery

= number of sold lottery tickets × a lottery ticket price

= 26C5 × Rs. 20.00 = Rs. 1,315,600

The cash for prizes

=∑ ¿¿ letters)

=[(5C3 ×21 C 2)×10000] + [(5C4 ×21 C 1 )×50000] + [(5C5 ×21 C 0 )×100000]

= Rs. 26,350,000

So the profitable revenue by the lottery

= The income received from the lottery - The cash for prizes

= 1,315,600 - 26,350,000

= Rs. - 25,034,400

We can see that at above time assumed, there is a loss of Rs. 25,034,400.00 by the
lottery.

4.5 PSEUDO CODE

Here using pseudo code, calculate the number of winning tickets for each prize in a
given week. Assume in practice, 70% of all possible tickets (combination of 5 letters) are printed
in a week.

// declare array for add a-z letters

Array Letters []={A,B,C,……………………………….,Z};

// add all combinations of size 5 from elements in array letters to

possiblealltickets array
Array PossibleAllTickets []= combinations(Letters[],5);

// add 70% of elements in array possiblealltickets to the array printedtickets

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Array PrintedTickets []= randsample(PossibleAllTickets[],
((PossibleAllTickets.length*70)/100));

N=3
// DO WHILE loop to calculate the number of winning tickets for each prize in
a given week
DO{
// add all combinations of N letters from 5 winning letters to array
TicketsWithWinningLetters[]=(5,N);

// add all combinations of 2 letters from 21 losing letters to array

TicketsWithLosingLetters[]=(21,(5-N));

// loop to set 5 letters in a ticket

FOR i=1 to WinningTicketsForPrize1.length step 2
FOR j=1 to TicketsWithWinningLetters.length step 3
FOR k=1 to TicketsWithLosingLetters.length step 4
WinningTicketsForPrize[i]
=TicketsWithWinningLetters[j]+TicketsWithLosingLetters[k];
NEXT k;
END FOR
NEXT j;
END FOR
NEXT I;
END FOR

// gives number of winning tickets for each prize

NumberOfWinningTicketsForPrize
=equalelaements(PrintedTickets[],WinningTicketsForPrize1[]);

// give the output result of NumberOfWinningTicketsForPrize for each

prize
PRINT NumberOfWinningTicketsForPrize;

N=N+1;
}
WHILE N<6

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4.6 SUGGESTION TO GET THE AVERAGE OF WINNING TICKETS
To maintain a lottery in long run, there we want to discuss new suggestion. Here from
above pseudo code we can get the number of tickets winning each prize in a weekly draw. So
we can calculate the number of winning tickets at any prize weekly. It’s difficult to do
practically, but from a automated computer program like above pseudo code we can calculate
winning tickets weekly & store that data weekly calculated in a data base. So after a month or a
year we can calculate the average number of winning tickets from the equation below.

The average number of winning tickets=The total number of winning tickets in the whole year

The number of weeks in a year(52)

5.0 GENERAL DISCUSSION

The Lottery Mathematics is used for above calculation. The probability & combination
formulas heavily used in Lottery Mathematics.

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6.0 CONCLUSION

The largest number of possible tickets can be printed = 65780

Possible number of winning tickets for each prize when all possible tickets are printed:

Prize 10,000 = 2100

Prize 50,000 = 105

Prize 100,000 = 1

A chance of a winning ticket is roughly 1/30 when all possible tickets are printed.

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