A recently released Gallup survey confirms the fears of many

A recently released Gallup survey confirms the fears of many who oppose government promoted gambling: the poorest among us are contributing mu C h more to lottery revenues than those with higher incomes. The poll found that people who played the lottery with an income of less than $20,000 annually spent an average of $46 per month on lottery tickets That comes out to more than $550 per year, and it is nearly double the amount spent in any other income bracket.

Solution

a.

Annual income of the poor family = $19500

Average Amount spent on lottery per month =$46

Total amount spent on lottery per year =46*12 = $552

Thus,

Percentage of income spent on lottery = Total amount spent on lottery per year / Annual income of the poor family

Percentage of income spent on lottery = 552 / 19500 = 2.83%

b.

Annual income of the affluent family = $37000

Total amount spent on lottery per year =$288

Thus,

Percentage of income spent on lottery = Total amount spent on lottery per year / Annual income of the poor family

Percentage of income spent on lottery = 288/37000 =.778%