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# /sci/ - Science & Math

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 >> Anonymous Thu 14 Jan 01:37:17 2021 No.12579021 Quoted By: >>12579281 >>12579001 Both are jewish scams.
 >> Anonymous Thu 14 Jan 01:39:15 2021 No.12579027 Quoted By: >>12579243 >>12579001 yes, duh. depends on the numbers, which we have none of here.
 >> Anonymous Thu 14 Jan 01:56:47 2021 No.12579081 Quoted By: >>12579227 >>12580472 A person averages 3-4 vehicle accidents in a life time. Not to mention all the weird shit like rocks hitting windshields and stuff. I've used car insurance many times (not at fault) and it has paid for itself many times over. Driving is probably the stupidest thing humans do.
 >> Anonymous Thu 14 Jan 02:07:28 2021 No.12579117 Quoted By: >>12579243 >>12579001 You are a smart one you figured it out. You just need the data and that’s very hard in many instances.
 >> Anonymous Thu 14 Jan 03:02:44 2021 No.12579227 Quoted By: >>12579081 I'm wishing for a future where it becomes obsolete
 >> Anonymous Thu 14 Jan 03:07:08 2021 No.12579243 Quoted By: >>12580635 >>12580921 >>12579027 >>12579117 Regardless of the numbers. Even negative expected value lotteries can be worth purchasing.
 >> Anonymous Thu 14 Jan 03:19:18 2021 No.12579281 Quoted By: >>12579021 based
 >> Anonymous Thu 14 Jan 03:26:55 2021 No.12579314 Quoted By: >>12579001 >what is downside risk
 >> Anonymous Thu 14 Jan 04:17:42 2021 No.12579456 Quoted By: >>12579480 >>12579001 Win lottery: diminishing returns Lose the no-insurance game: miss out on priceless safety all to save a bit of money
 >> Anonymous Thu 14 Jan 04:28:28 2021 No.12579480 Quoted By: >>12579456 Large fluctuations in money matter more than small fluctuations. Thus, insurance and the lottery are valid tools; one to sacrifice small consistent amounts to protect against potential large losses, one to sacrifice small consistent amounts for the chance at large gains.
 >> Anonymous Thu 14 Jan 12:56:00 2021 No.12580472 Quoted By: >>12580652 >>12580921 >>12579001 Sure. Nominal monetary value doesn't scale 1:1 with marginal utility. Maybe losing 2.5$a month is so negligible that the the 1 to 300.000.000 odds of being filthy rich is worth the while to you. I personally prefer to keep the 2.5$. >>12579081 Still, the average person will pay more into car insurance that she would have to pay for car damages were she uninsured. Otherwise there would be no profit margin on an insurance business. So the difference is degree, you are losing more money on average with both insurance and lottery; where each person draws the cut-off point is always somewhat arbitrary.
 >> Anonymous Thu 14 Jan 14:29:31 2021 No.12580635 Quoted By: >>12579243 Never claimed something different. It’s a question of many factors. Even in the naive portfolio models it definitely can be.
 >> Anonymous Thu 14 Jan 14:36:36 2021 No.12580652 Quoted By: >>12580923 >>12580472 >Still, the average person will pay more into car insurance that she would have to pay for car damages were she uninsured. >Otherwise there would be no profit margin on an insurance business. >So the difference is degree, you are losing more money on average with both insurance and lottery; where each person draws the cut-off point is always somewhat arbitrary. Not him. But they don’t do it as a hedge to make money, but as a hedge to ensure liquidity. If you end up without a car, but need one to make money it’s pretty bad, if you can’t afford one. Obviously, if you can easily get a loan in that case it’s something different, but you need to factor it in. In some cases insuring something can be good and in some buying a lottery ticked can be, but it depends.
 >> Anonymous Thu 14 Jan 16:13:33 2021 No.12580921 Quoted By: >>12579001 >>12579243 >>12580472 Car insurance does not have a large negative expected value because most of the money they earn is actually invested to yield around a 2% return. Therefore the profit insurers make is not from taking a % of your premium but from their ROI
 >> Anonymous Thu 14 Jan 16:14:35 2021 No.12580923 Quoted By: >>12580652 Forgot to add that it might change in the future if interest rates remain at 0 as they will not able to earn a safe return