Algorithm for Detection of Illegal Discounting in North Carolina Education Lottery

Jiayi Fu (), Jack Prothero () and Jan Hannig ()
Additional contact information
Jiayi Fu: The University of North Carolina at Chapel Hill
Jack Prothero: The University of North Carolina at Chapel Hill
Jan Hannig: The University of North Carolina at Chapel Hill

Sankhya B: The Indian Journal of Statistics, 2024, vol. 86, issue 1, No 9, 224-240

Abstract: Abstract The lottery is a very lucrative industry. Popular fascination often focuses on the largest prizes. However, less attention has been paid to detecting unusual lottery buying behaviors at lower stakes. Our paper introduces a new model to detect illegal discounting in the North Carolina Education Lottery using statistical analysis of net gains and ticket buying habits. Nine outlying players are flagged and are further examined using a proposed stochastic model to calculate the range of their possible losses in the lottery. The unusual buying patterns of the players flagged as outliers are further confirmed using a K-means clustering analysis of lottery store visiting behaviors.

Keywords: Illegal lottery discounting detection; Entropy; K-means; Stochastic model (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13571-024-00323-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sankhb:v:86:y:2024:i:1:d:10.1007_s13571-024-00323-1

Ordering information: This journal article can be ordered from
http://www.springer.com/statistics/journal/13571

DOI: 10.1007/s13571-024-00323-1

Access Statistics for this article

Sankhya B: The Indian Journal of Statistics is currently edited by Dipak Dey

More articles in Sankhya B: The Indian Journal of Statistics from Springer, Indian Statistical Institute
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().