The same could be said about any job though. There's always another job somewhere else that pays better. That's true whether I get a pay cut or not.Originally Posted by Tucker Case
No, as that would be -EV for me. 90% of the time I get $100. 10% of the time I lose $1,000.Originally Posted by Tucker Case
(.9)($100) + (.1)(-$1000) = -$10
On average I'm losing $10 every time I play this game. What does this have to do with the thread though?
According to your numbers, a layoff would cost me somewhere between $1282 to $2564. But if I vote for the layoff, I'm only being laid off myself about 10% of the time. The other 90% of the time, it costs me nothing. So my expected loss is only:Originally Posted by Tucker Case
(.1)(-$1282 to -$2564) + (.9)($0) = $128 to $256 on average