01-21-2025, 08:02 PM
Hi,
I'm trying to figure out if it is worth buying insurance for a percentage increase of winning in this theoretical scenario. The math problem is as follows:
Suppose there is a gambling game where we need to bet 1000 dollars to roll the dice, or have the chance of winning. And we have a 30% chance of winning with each bet, 70% chance of failing. The goal is just to win. However, the gambling system allows us to buy insurance to increase our chances of winning. It will cost us 800 dollars to buy an insurance that will increase our chances of winning by 20%. So now, it will cost us $1800 to have a 50% chance of a random roll to win. The question is, is it worth it to buy that insurance? How do I write this in a mathematical equation and understand this problem a bit better?
Thank you in advance!
I'm trying to figure out if it is worth buying insurance for a percentage increase of winning in this theoretical scenario. The math problem is as follows:
Suppose there is a gambling game where we need to bet 1000 dollars to roll the dice, or have the chance of winning. And we have a 30% chance of winning with each bet, 70% chance of failing. The goal is just to win. However, the gambling system allows us to buy insurance to increase our chances of winning. It will cost us 800 dollars to buy an insurance that will increase our chances of winning by 20%. So now, it will cost us $1800 to have a 50% chance of a random roll to win. The question is, is it worth it to buy that insurance? How do I write this in a mathematical equation and understand this problem a bit better?
Thank you in advance!