5 ms·
The assumption that every possible value from 0 to 99 is equally likely doesn't seem like the best idea. In a country where the cost of items usually ends in .9
by btgeekboy 14y ago
The assumption that every possible value from 0 to 99 is equally likely doesn't seem like the best idea. In a country where the cost of items usually ends in .99, .97, or the like, and the sales tax is added after the fact (and usually from 0-10%), is it still the best choice? The post (and cited paper) don't seem to mention this.
That said, I don't know where you'd acquire these sorts of statistics.
- cdrxndr 14y agoCompletely agree: prices are not set arbitrarily or via direct calculation in many cases, but are driven by marketing ($1.99) or optimization (the local pizza shop that works everything out to even $ or 50c).
- dfc 14y agoI also wondered about the random assumption. The thing that made me question the assumption the most is Benford's law.
- ShardPhoenix 14y agoI don't think Benford's law applies here: it's about the first digit of numbers (that are distribute in a certain way), but in most cases the first digit of a price will be denominating dollars, not cents.
- jack-r-abbit 14y agoBut taxes vary throughout the areas. And adding more items together. and splitting the dinner bill among friends. and all sort of other things that can make the final total anything from 0 to 99. I don't think it is silly to make the assumption they are equally likely. But I also don't know where you'd acquire these sorts of statistics.
- factorial 14y agoYou seem to be confusing change with sticker prices. Have you ever bought stuff at the supermarket as opposed to, say, shopping for merely single items? You'll find that it is incredibly rare to have the total come out at x dollars and 99 cents or some other marketing sticker price.
- emiliobumachar 14y agoCredit card companies would know, but probably not publish.