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/biz/ - Business & Finance

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23365937 No.23365937 [Reply] [Original]

This is a stupid question, but I'm sure you guys can help me out. This isn't homework, it's a real situation.

I stand to lose 55 EUR if I take an action, but also stand to win 25 EUR if I take the action. What does the chance of winning have to be in order for this to be a proposition worth taking, in a game theory sense?

>> No.23365970
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23365970

haircomb token

>> No.23365996

68.75%

>> No.23366000
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23366000

>>23365996
How do you arrive at this value? Is this about expected value?
https://www.calculatored.com/math/probability/expected-value-calculator

>>23365970
fuck off shill

>> No.23366027

>>23366000
yes, you are looking for a p such that
(1-p)*55 - p*25 > 0
solve this inequality for p and you get 68.75%

>> No.23366043

>>23365937
What's the situation?