“Bernoulli’s Gift”
Expected Value = (Odds of Gain) X (Value of Gain)
This is, generally speaking, a pretty good way to make decisions. It doesn’t just apply to money, it can apply to everything in our lives. It probably does, whether we know it or not. Plus it has the added quality of being easy.
Or does it? If it’s so easy, why do we have such trouble making the right decision? Why is it so difficult for us, individually and as a national and global Whole, to do the right thing?
Dan Gilbert does a great job discussing that problem. The video is about 23 minutes, with a Q&A session lasting about 10 minutes at the end. I’m betting if you sit through the 1st part, you will definitely want to check out the Q&A at the end. It’s a holiday – you’ve got time…
OOPS! The embedded video stopped working. Click the link above for a great presentation.
I’m going to watch this again, I think.
I mean, seriously – this is an awesome video.
Thanks to Barry at The Big Picture.
I hope everyone’s holiday is going well.
I am Jon, sitting right beneath the weather.
