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219 points skadamat | 1 comments | | HN request time: 0.25s | source
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xnorswap ◴[] No.41301135[source]
My favourite corollary of this is that even if you win the lottery jackpot, then you win less than the average lottery winner.

Average Jackpot prize is JackpotPool/Average winners.

Average Jackpot prize given you win is JackpotPool/(1+Average winners).

The number of expected other winners on the date you win is the same as the average number of winners. Your winning ticket doesn't affect the average number of winners.

This is similar to the classroom paradox where there are more winners when the prize is poorly split, so the average observed jackpot prize is less than the average jackpot prize averaged over events.

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1. nonameiguess ◴[] No.41304369[source]
This is (technically) wrong, but not for the reasons I've seen others give so far. Your reasoning is basically fine, but your definition of an average jackpot prize is not. If we have k lottery winners and we denote each individual prize as n_i, then the average prize is sum(n_1 ... n_k) / k. It's pretty easy to see that number cannot possibly be larger than all individual n_i and thus it cannot be the case that "you" won less than the average prize for all possible yous. Some winners win less than average and some win more, or they all win exactly the same amount.

On the other hand, your analytically computed expected winning is indeed less than an analytically computed expected average prize, when conditioned on the fact that you won, because you are more likely than not to be in a lottery that has more winners than the average lottery. This is mathematically the same phenomenon as the thing where the perceived average class size if you sample random students is greater than the actual average class size, because more students will be in the larger classes. This doesn't mean every class is larger than the average class, which is not possible. It just means that if you randomly select a student, you have a better than 50/50 chance of selecting someone in a larger than average class.