need an simple explanation

[diablo01 0]

He said simple. If they couldn't figure it out from the way he said it in class, here is what I would try.You are 1 in 40 to make 20 million. For every 40 times to pay the 1 million, you will get 20 million back once.Spending 40 million to make 20 million does not make a lot of sense.

What if u get lucky and hit the first time for 20 million, quit your job and start playing poker?Makes good sense to me

[speedz99 145]

sorry CalebCaleb? Really

My father is a pastor.

Double sorry.

I know. I don't have the heart to tell him I'm an atheist.

Sounds like fun.Don't worry about it. I just informed my parents (in Boston) that me and my Catholic girlfriend (I'm jewish) are moving to Chicago, possibly forever...and the response I got from my mother is that she has died a little inside.Riiiiiiiight.

[diablo01 0]

or on second thought maybe i should give up my $5.50 Sng's...im 8-1 against and only getting back 4-1 for a win. censored!

[turd ferguson 1]

Sounds like fun.Don't worry about it. I just informed my parents (in Boston) that me and my Catholic girlfriend (I'm jewish) are moving to Chicago, possibly forever...and the response I got from my mother is that she has died a little inside.Riiiiiiiight.

That's pretty funny. I've been living with my girlfriend for about six months now and I still haven't told my parents. They would freak out.

[Jeff 0]

He said simple.  If they couldn't figure it out from the way he said it in class, here is what I would try.You are 1 in 40 to make 20 million.  For every 40 times to pay the 1 million, you will get 20 million back once.Spending 40 million to make 20 million does not make a lot of sense.

The deal as is plays 20:1 for 40:1 odds

[Vatche 0]

1 in 40 means you should get 40X odds. It has nothing to do with breaking even in the long run.  The deal as is plays 20:1 for 40:1 odds

im not trying to be a smart ass or anything, but 1/40=39:1 :-)side note...i'm in love with ur avatar. :shock:

[Pokerdad2222 0]

You should just tell them all not to be so stupid. That's what I would do. It's pretty simple as it is.

grinder mj thinks you are funnier than me? No.I still love you though Franky boy.It is Frank isn't it?I like real names better.

I call it near even. I also have to throw Dunkin Doughnuts in the loop as well. Good dry sense of humor.

[Governator 54]

The real question is does the investor have the bankroll to withstand the variance.

[_Great_Dane_ 0]

oh fcpers i was in my bus. org. class today and this problem came up. in short it was just asking if you should advise a partnership to put up one million dollars to make 20 million but the probablility of making that 20 million is only one in forty.well us poker guys know that the answer is no. because a one in forty chance to make 20 million is only worth 500k bet in the long run to break even, so the invest appears to be a losing on in the long run.well alot of the class didnt quite understand the logic so after class he asked me if i could find a very simple way to explain this.so do you guys have a very elementary way of explaining this

I didn't read much of what everyone else wrote.I would give the following example to the class:Tell the class that you'll flip a coin, and they need to choose head or tail. They will bet $100. If they guess wrong, they lose the $100; if they guess correctly, they win $50! Hopefully, they will realize that this is similar to the situation that you initially proposed.

[milestodavid 0]

i <3 maff

[killer 0]

fytitle

[finztotheleft 0]

I hate to rank on the members of your law school class, croc,but how did they get into law school being unable to figure this out ! I tutor kids for the SAT's and I see the sad math skills of teenagers everyday, but you should be in class with the cream of the crop. Sad.To confirm how sad that is, I just called my 11 year old down to look at the problem. He immediately said, "Why would you risk 1 million to make 20 when you only have a one in 40 chance. Who's that dumb ?"From the mouths of babes.....

[SweetDaddyFreak 0]

I would just whip out my penis in front of the class.Then they would now which one is bigger

[crocd99 0]

I hate to rank on the members of your law school class, croc,but how did they get into law school being unable to figure this out !  I tutor kids for the SAT's and I see the sad math skills of teenagers everyday, but you should be in class with the cream of the crop.  Sad.To confirm how sad that is, I just called my 11 year old down to look at the problem.  He immediately said, "Why would you risk 1 million to make 20 when you only have a one in 40 chance.  Who's that dumb ?"From the mouths of babes.....

you would be surprised how dumb people are. alot of people just suck at math. in law school there really isnt much math. its usually about rules and things. i mean really in my ethics class they stressed the importance of having someone else handle the accouting. there are a lot of factors that go into getting into lawschool to. like a father who donates lots of money and other thinks.actually i read a story today in a san dieago news paper about the former dean of harvard law school. standford is a very very good law school and the dean just recently was involved in a 500 mill dollar pharmacutical law suit but she was not a member of the cali bar. she took the bar and failed it. so yeah sometimes people who you think should be smart really arent.

[nritchi3 0]

Tell them this:If you have 40 million chips and then you divide that by the 20 million the you could get plus the 1 Million that you initially invested then you will come out with 500 however you have to factor in the time value of money so the Present value of this calculation warrants increase the 500k to 500^3 therefore the value is 125000000 and it is a good investment. .....I guarantee this will **** them up so bad that they are guaranteed to fail the exam and you'll get the best mark forsure.

[crocd99 0]

I hate to rank on the members of your law school class, croc,but how did they get into law school being unable to figure this out !  I tutor kids for the SAT's and I see the sad math skills of teenagers everyday, but you should be in class with the cream of the crop.  Sad.To confirm how sad that is, I just called my 11 year old down to look at the problem.  He immediately said, "Why would you risk 1 million to make 20 when you only have a one in 40 chance.  Who's that dumb ?"From the mouths of babes.....

also i think the reason why they didnt understand it is because of the same reason donkeys make good players money.the company was in debt and if they won the 20 mill they could pay it off.if not they would still be in debt but a million more. however this is a loosing gamble and they should just use the mill they have to pay off as much as they could. donkeys i think, have the same mentality they get down and say hey let me move to a higher level with my last amount of money in the roll because if i do well i could make it all back.