August 1st, 2005, 12:20 pm
I got the probability = 0.00350877193064151Quite low (0.3%) ... there was a 1 in 300 chance.In my usual self, I would be willing to bet upto $10 on such a thing (expecting $3000 in case of a win).And probably, I won't accept more than $1 for betting the other side (i.e. if I lose, I would need to pay atmost $300).Now, what does it tell about my risk-taking ability or loss-averse nature ?How do you think I should condition my risk-taking preferences .... to win in real-world markets?Neither of those big nos. (300 or 3000) would make me broke .... but does the statement of my preferences, directly extrapolatable to much higher number (which could make a difference of me getting financiallybroke or not)?Lastly, how much you be willing to bet on the either side, if offered the bet in real-life situation?