Lotteries are big buissness and a major revenue source for many governments. As of 2017, all but seven states in the United States have some type of lottery, and total spending on these lotteries is approximatley $75 billion per year. About One-fourth of that money ends up as state revenue, with the rest going to prizes and expenses. Lotteries present many lessons in probability, and lottery statistics fuel great debate over whether lotteries are an appropriate way for government revenue. Working individually or in a group, consider the following questions.

1) Given a U.S. population of 325 million, about how much does the average american spend on lotteries each year? How much does the average adult spend on the lottery? (About 23% of the population is under age 18.)

2) Surveys indicate that fewer than half of all American adults play the lottery in any given year. What is the average spending per adult lottery player? Does this result surprise you, or is it consistent with what you would expect based on the spending of your friends and family members who play the lottery?

3) Look up various games available in North Carolina and the probabilities of winning different prizes in this state. Consider the fact that the lottery operators have spent millions of dollars researching how to encourage people to play the lottery as much as possible. Discuss how this research is applied in the selection of the games and probabilities for North Carolina (or to power ball.)