I had this in the Offshore Sportsbooks and Gambling forum, but I suspect I'll get more action here.
Without griping about the accuracy of the percentages, which of the following would you rather play?
%........price......PV(true%-needed%)...........R.O.I.
55.......+100......(55-50)=+5.............(55*2)/100=1.1 (10%)
60.......-120.......(60-55)=+5.............(60*1.83)/100=1.1 (10%...but less than that above)
65.......-150.......(65-60)=+5.............(65*1.66)/100=1.08 (8%)
I don't know if this is a trick question or not. A related problem that I'm working on suggests that it might be. I'll get to that if I get any action here.
Any problems in the above table, or any other suggestions for analyzing the relative values is appreciated.
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Got one foot on the platform
The other foot on a train
I'm going back to New Orleans
To where that ball and chain
(The Animals-House of the Rising Sun)
Without griping about the accuracy of the percentages, which of the following would you rather play?
%........price......PV(true%-needed%)...........R.O.I.
55.......+100......(55-50)=+5.............(55*2)/100=1.1 (10%)
60.......-120.......(60-55)=+5.............(60*1.83)/100=1.1 (10%...but less than that above)
65.......-150.......(65-60)=+5.............(65*1.66)/100=1.08 (8%)
I don't know if this is a trick question or not. A related problem that I'm working on suggests that it might be. I'll get to that if I get any action here.
Any problems in the above table, or any other suggestions for analyzing the relative values is appreciated.
--------------------------------------------------------------------------------
Got one foot on the platform
The other foot on a train
I'm going back to New Orleans
To where that ball and chain
(The Animals-House of the Rising Sun)
