Analysis of Risk Problems in Lottery with Ruin Probability
Zhang Wei-hua · Journal of Hebei North University · 2010
The risk problem in selling lotteries of lottery company is investigated.By introducing the notion of bankruptcy in insurance,the mathematical model of lottery risks is gained and the ruin probability for a phase of lottery is defined.With some methods in probability,the ruin probability function of lottery and the upper,lower bounds of ruin probability are obtained.When ruin probability is larger than certain value,the lottery company will confront operation dangers.