Wednesday, April 25, 2012

Poor Red Sox

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Here we have the American League East standings as of the morning of April 25, 2012. I can't remember ever seeing 4 teams tied for first before. It may have happened, but I can't recall it.

While the topic of numbers is open, I have a lotto pay scenario I need you to resolve.

You win a lottery and are given a choice of two payment methods.
Method #1: $23 per day for life.
Method #2:  Your daily payment is randomly chosen from a drwawing out of a hat to be a whole dollar amount of at least $1 but no more than $100.  In choosing this option, starting with the second day, and for each day thereafter, your award gets reduced by a random whole dollar amount between $1 and the amount you were paid the previous day. For example if on day one you drew $78, and on day 2 you drew $98, the $98 dollar amount would be reduced by some value from $1 to $78. Your actual winnings would thus be less than $98. Here are 3 possible outcomes for the first 10 days. (Remember: this is for the rest of your life, and realize that in method 2 some days you might even loose money).

Which of these 2 methods of payment is to your benefit?

Feel free to leave your answer with an explanation. Use the "comment" link below.

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