3 ms·
> negative expected value This would only be true if the value of money was linear. The value of money is not linear. A 10% chance of a 1000$ loss can be far
by FeepingCreature 10y ago
> negative expected value
This would only be true if the value of money was linear.
The value of money is not linear.
A 10% chance of a 1000$ loss can be far more harmful than a 100% chance of a 100$ loss, especially at low income.
- kwikiel 10y agoThat's called expected utility. Most people on HN knew about expected value but they don't know too much about expected utility. I suggested reading about it and St. Petersburg paradox