Best option

ja5730

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Feb 8, 2021
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What option would save you the most money on, given 50 cents with 60% accuracy or 30 cents with 40% accuracy, what would be the best option.
 

JeffM

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Care to explain further what you mean by “accuracy.” Are you talking probabilities?
 

ja5730

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Feb 8, 2021
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Yes, taking probability. I'm studying case interview questions and this one didn't make much sense to me.
 

JeffM

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That is because it does not make ANY sense.

The expected value of a 60% probability of 50 cents and a 40% probability of nothing is 30 cents. The expected value of a 40% probability of 30 cents and a 60% probability of nothing is 12 cents. But I have no clue what was intended by this question. It probably was made up by an HR person, who are usually the stupidest people in any company except for a small minority of the maintenance crew and security guards.
 

Subhotosh Khan

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It probably was made up by an HR person, who are usually the stupidest people in any company except for a small minority of the maintenance crew and security guards.
Getting feisty here.

HR people are nice - I hope they do a good job at maintaining their pencils sharp ...

I don't want to speak evil of them - my pension might get cut into half. And it will be all your fault!!

Now maintenance people have to be smart - they have to change light bulbs. You know PhD engineers could not do that.
 

ja5730

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Feb 8, 2021
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Thanks for the replies guys, as long as I know I'm not the only one that thought this question was odd. lol
 
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