Origin of the idiom 'no cigar'?

[Veeresh.]

English Language Tests, Intermediate level

ESL/EFL Test #283 "English Slang Idioms (5)", question 2

I obviously still don't understand the concepts we've been discussing in class. Every time I answer the teacher's questions, she says "Close, but no .........."

(a) cigar
(b) coupon
(c) prize
(d) purpose

English Language Tests, Intermediate level

ESL/EFL Test #283 "English Slang Idioms (5)", answer 2

I obviously still don't understand the concepts we've been discussing in class. Every time I answer the teacher's questions, she says "Close, but no cigar."

Correct answer: (a) cigar
_________________________

I fail to understand why Cigar is the answer to this question. How did this Idiom originate ?

[Mister Micawber]

.
A cigar was a common prize for winning a small event or competition, as at a carnival.
.
_________________
Native English teacher at Mister Micawber's