3 ms·
The expected value with your numbers is $580. You are only pricing the case of the $700 repair, not the 30% chance you get a fully functional machine.
by jdsully 8y ago
The expected value with your numbers is $580. You are only pricing the case of the $700 repair, not the 30% chance you get a fully functional machine.
- gnicholas 8y agoNot if you factor in the adverse selection problem, or the time spent getting it fixed!
- whatsapppppp 8y agoyes, the time spent getting it fixed