Would you rather?

Would you rather $500 right now, or a 15% of getting a million dollars, this in my last video, and 65% of you went with option B. But, that means that 35% of you went with option A, and that says something very interesting about either your mathematical ability, or your personality and upbringing, or maybe both. So let's unpack that. First, mathematically speaking, there's something called an expected value, which is a way of evaluating probabilities. And if you were to take that same gamble of 15% chance of getting dollars, a thousand times in a row, you would end with an average of $150,000 each time you did it. So the value of the second gamble is $150,000, which is a whole lot more than $500. But, if you're very risk-averse, that high chance, 85% chance of getting nothing. And therefore, option A. Or maybe you didn't know the mathematical analysis. But, if you unpack it more, think about the type of person who would take A over B. A lot comes down to your level of how you think about money and how much you need it. People who had a lot of difficulties in life are often faced with the challenge, really, needing the money $500 might be meaningful at the moment. Lets their rent next month. And they need that more than the 85% chance of getting nothing, even if that 15% chance Which exemplifies how, when people are disadvantaged, to take the risks that might let themselves out the situation because they just can't afford it. The rich people end up being able to for some sorts of gambles, they get richer, and the poor people just can't. And it's not actually because understand math, can't risk the negative impact on their lives. Honestly very sad, I wish we could do something about it, but it's something to think about.