» List all forums
» » Forum: Tips & Tricks, Questions & Answers
» » » Thread: Should you open a chocolate box? Math (EV) says no.
» » » » Post: Should you open a chocolate box? Math (EV) says no.
Print at Jan 20, 2021 12:12:02 PM
|Posted by altruistcan at Sep 19, 2013 2:12:20 AM|
Should you open a chocolate box? Math (EV) says no.
Out of curiousity, I decided to calculate the EV of opening a Chocolate Box, seeing people were selling them for over 100k on Emerald.
I estimated the value based on current selling prices on Emerald to the best of my abilities. Many of the prices listed are higher than what they usually sell for, just to eliminate doubt.
You're only expected to get about 27k in return from opening a chocolate box! (Even less if you think you can't sell for the prices I listed)
In other words, you're likely to get 4 times as much value selling it.
This likely means one of two things, or both:
1. Chocolate boxes are overpriced.
2. People are selling chocolate items for too low.
For those who don't want to look up EV (Expected Value), it basically means if you were to open a very high number of chocolate boxes, the average value of each box would be close to the EV.
As an example, if you had 1000 boxes, and sold everything for the prices I listed, you'd have very close to 1000 * 27k, or 27000k.
The EV of a typical lottery ticket is negative. But you can still win the lottery. That said, lottery usually takes about 40-50%, in this case, you're at 75% chance of losing value by not selling.
Powered by mvnForum
mvnForum copyright © 2002-2006 by MyVietnam.net