Randomness in the Premium Bonds Market
Some people wonder about the randomness of the premium bonds lottery that is conducted each month. The randomness has been under scrutiny in the past and the National Savings and Interest agency, the people who conduct the lottery are scrutinized by an outside agency to provide security so that winners have an equal chance.
The Government Actuary Department was created for the sole purpose of checking the premium bond system and the randomness of the numbers. The Government Actuary Department is not associated with the National Savings and Interest agency and is does not receive any monetary funds. Just like the agency that checks the gauges and meters of gas pumps, the Government Actuary Department just regulates honesty for the good will of the citizens of Great Britain.
There are conspiracy theories that say that only regional areas of the British Isle win more than others. What these people do not take to mind is that the population differences as well as economic differences create statistical abnormalities that skew the awarding of cash prizes. The Government Actuary Department investigates these allocations and through statistical analysis most are proven only disparities in population and how many people in each region actually participates in the program.
The National Savings and Interest agency also takes these allocations very seriously and encourages investigation from outside agencies. If these false allocations are true, it could seriously affect the premium bond program and the agency that supports it. The scrutiny and honesty is the upmost priority of the National Savings and Investments, and scrupulous behavior is not tolerated.
Another theory is that new bonds win more than old bonds bought decades ago. The Government Actuary Department explains this by stating that populations have grown as well as the population of people buying premium bonds. The randomness remains the same, but if the purchase of new bonds that were purchased in the last decade is double or triple the amount of bonds purchased in the decade between 1950 and 1960, the number of winners will mostly come from the last decade. The general public has a hard time explaining this and when they have had bonds that have not won ever, of course they think that there is something fishy with the random number generator or the people at the National Savings and Investment. The Government of Actuary Department assures the public that the randomness does not discriminate against older bonds than newer ones.
The premium bond program relies on the effectiveness of the random number generator. Some people have suggested the ping pong number generator that American lotteries use. The only problem with that is that there are millions and millions of numbers generated to use and the ping pong method. The random generator that the British system uses has gone through four upgrades and a fifth is being looked at if the popularity of premium bonds continues to increase. Premium bonds still remain a great investment and the fun at a chance of winning will continue to make the program succeed.