[2013-May-17] Statistics

[ReasonablyDoubtful]

I think a better reason would be people who bash people that play the lottery, but still buy insurance themselves.

[Elrieve]

The combination of math and balls made me think of The Hairy Ball Theorem. Ball math!

[Lethal Interjection]

I think a better reason would be people who bash people that play the lottery, but still buy insurance themselves.

Nope. It wouldn't.

[Sankara]

The equivalent of playing the lottery in terms of "irrational conduct" is buying insurance on things you can afford to lose, like a computer monitor. Buying insurance on things you cannot afford to lose, like a house or a car, is perfectly reasonable. Hope this helps.

[ReasonablyDoubtful]

The equivalent of playing the lottery in terms of "irrational conduct" is buying insurance on things you can afford to lose, like a computer monitor. Buying insurance on things you cannot afford to lose, like a house or a car, is perfectly reasonable. Hope this helps.

But how much does a lottery ticket cost? Surely you could easily take that into your budget without really losing anything, but winning the lottery means a complete change of your life. So it's an effective investment of nothing for a possible gain of, well... a whole hell of a lot.

And that's a good bet no matter how bad the odds are.

Which is the point of insurance.

[Anon]

So, a Pascal's Wager?

[Oldrac the Chitinous]

I'll Pascal's wager you in a minute.

[Lethal Interjection]

I'll Pascal's wager you in a minute.

And he'll do it, too.

[ReasonablyDoubtful]

So, a Pascal's Wager?

Essentially, yes, which is how both insurance and the lottery work: It's not about absolute dollar amounts, it's about effective loss and gain in terms of lifestyle.

[joeyjmiller]

"It will be worth it if we are able to save just one life"
I've heard this statement about gun control, and extra law enforcement powers. It's generally not true, saving just one life is not much of an accomplishment for sweeping legislation that costs millions of dollars and require effort or sacrifice from millions of people.