Categories
Consumer Choice & Behavioral Statistics

Probability of Success

When it comes to selecting numbers for a lottery, people tend to irrationally believe certain numbers are more important than others. Each number is just as likely to be selected as the other numbers, so placing a higher probability on one number being selected isn’t rational. Garret isn’t fooled, but he also isn’t fond of wasting his time watching others behave so irrationally.

Categories
Supply & Demand

Lottery Debate

Mateo and Cheyenne discuss what they would do if they won the lottery. The two list a variety of different items they would spend their money on after receiving their income boost. This income adjustment would result in the two of them purchasing normal goods, specifically luxury goods. These purchases are driven by income changes, not by the price of those products.

Categories
Labor Statistics Supply & Demand

Winning the Lottery

What would you do if you won the lottery? This clip fits nicely with two different sections of an economics course. The first is how people respond to income increases in terms of purchasing normal goods or luxury goods. For labor economics, this discussion is a good segue to discussion how increases in income decrease the time people devote to work assuming leisure is a normal good.

Categories
Statistics

Picking Random Numbers

Cheyenne and Mateo are trying to pick numbers for the upcoming Missouri jackpot and are discussing how random their numbers are. While each combination is no more lucky than any other combination, there are particular numbers that people pick because they feel lucky. The odds of the lottery being 1-2-3-4-5 are just as likely as any other combination of five numbers, but the likelihood of sharing the jackpot with another person is probably pretty low.