You have a choice of: A) $1 million cash now. B) Throwing a fair dice. Heads = you get nothing. Tails = $6 million cash now. What do you do?
Replying to @Trader_Dante
* Considering you meant "a fair coin" * Expected Gain (A) = $1M Expected Gain (B) = 0.5(0) + 0.5(6) = $3M This is from a purely mathematical standpoint, the decision obviously varies when accounting for personal/financial circumstances.
3:02 PM - 25 Oct 2018
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