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Compare the following:
"I prefer a 1% chance of losing $1000"
"I prefer a 5% chance of losing $1000"
with this:
"I prefer a 1 in 100 chance of losing $1000"
"I prefer a 1 in 20 chance of losing $1000"
Earlier quoted context omitted.
Would you pay 50k to join a startup and work for free as a consultant?
And just so everyone knows what I mean by this, 50k is the opportunity cost of the other job that's being forfeited. This means that the "thrill" of working in a startup must be worth at least 50k.
I'm sure that my behavior does not reflect my answers on this test. Given the numbers, I calculate expected value and answer rationally. In real life, a) the values and percentages are much less clear and b) even if they weren't I know I don't follow them as rationally.
Behaving on expected value is not rational.
I'm sure that my behavior does not reflect my answers on this test. Given the numbers, I calculate expected value and answer rationally. In real life, a) the values and percentages are much less clear and b) even if they weren't I know I don't follow them as rationally.
Am interested to see the results, and more importantly, the HN discussions about the results!