LogFAQs > #907511169

If we tested 1000 rocks, we would expect 10 of them to actually contain rare minerals on a positive result, while 99 of them would not on a positive result. Assuming we bought all of the rocks that had a positive result, we would spend $54,500, and only receive $10,000 when we sell the 10 rocks that actually contain rare minerals.

That's a net expected loss of $44,500. Our average expected loss over all the 109 rocks we would buy out of the 1000 that were tested is ~$408.26 per rock.

This is a terrible deal.
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