Posted: February 7th, 2017

If you had to pay to enter a drawing with the same probability of winning, how much would you be willing to pay to enter?

Look up the capacity of an event center near you. For example: If I lived in Los Angeles, I could look up the capacity of the staples center and find out it seats 18,118. Imagine you are in the event center, if they draw your seat number you will win $1000, what is the probability that you will win? If you had to pay to enter a drawing with the same probability of winning, how much would you be willing to pay to enter?