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  3. Statistical Simulation in Python

Exercise

Simulating one lottery drawing

In the last three exercises of this chapter, we will be bringing together everything you've learned so far. We will run a complete simulation, take a decision based on our observed outcomes, and learn to modify inputs to the simulation model.

We will use simulations to figure out whether or not we want to buy a lottery ticket. Suppose you have the opportunity to buy a lottery ticket which gives you a shot at a grand prize of $10,000. Since there are 1000 tickets in total, your probability of winning is 1 in 1000. Each ticket costs $10. Let's use our understanding of basic simulations to first simulate one drawing of the lottery.

Instructions

100 XP
  • Define chance_of_winning as the probability of winning the lottery.
    • Remember that 1 out of the total number of lottery tickets sold will win.
  • Set the probability list to the probabilities of receiving corresponding gains using chance_of_winning.
  • Use np.random.choice() to perform one simulation of this lottery drawing.