it is +ev to call, but would YOU?

[blaze666]

buy a million hookers.

[jtr]

Surely with 50 million in the bank we can set our sights higher than $50 hookers?

[Dazarath]

No, I would not take the gamble. A lot of things are +EV, but not worth it. For example, a fair coinflip for all of your assets, money, house, everything for even money with an additional cent. In this case, your risk of ruin for playing this game once is 50%. The reason why we save up 300 BBs as a bankroll is so we can take advantage of slightly +EV situations without having too high of a RoR.

As for the coin game, I wouldn't pay much to play it. The expected value is not the only thing you need to look at. What if I set up a game such that you get some very small chance to win a very large amount of money. You get a 1/10^30 chance to win $10^40, otherwise you lose all your assets, house, etc etc. The expected value for this game is very high, but it's not a worthwhile gamble.

For the AA vs KK situation, well, I'd be a 95.657% favorite. In other words, I have a 4.343% chance of dying. Considering that I'm down in LA for school, I feel like I have much more than a 4% chance of getting killed by some shitty LA driver everytime I drive, but I get no money for it. This is a very good gamble to me. [img]/images/graemlins/ooo.gif[/img]