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From the article, a 100 golfer tournament with a hole in one prize of $7500 costs $187 in premiums. If the hole in one probability of each golfer is 1/12500, th
by supernewton 4y ago
From the article, a 100 golfer tournament with a hole in one prize of $7500 costs $187 in premiums. If the hole in one probability of each golfer is 1/12500, the expected payout is only $7500/12500*100=$60, so I'm going with "hugely profitable".
- eru 4y agoI'd go with: the actual actuarial cost of the hole-in-one payout is a small part of their business. You still have lots of paperwork and taxes and general business overhead.
- listenallyall 4y agoNow add labor cost of a person to stand by the tee box all day and validate potential winners.