LogFAQs > #907510062

EclairReturns posted...

You'd be losing an average of $490 to your "friend", and so you wouldn't take the deal. It's been a long time since I've done probability, so forgive me for my poor math.

Actually, I made that mistake, but the false negative is 100% a false negative, not a 50%. So that number is actually $480.

Actually, the number would fall back to the default 1%, so $480 + $0.002.

Those would be your profits, your friend would be gaining $1000 - $480 ($520) per trade (not taking into account the money he could make taking the rocks out himself)

I don't have many friends.