Tuesday, May 13, 2008

9pm exhaustion come crashing in.....

... I don't get this show... Deal or no deal. There are 2 skills Keeping your greed in check, and some simple math....


Let me do it for you... the median value on the board is 100K... the minute you get to that level... Get out!! It's done...


almost every contestant gets to 100K... and then they push their luck beyond that till they lose.




The specific Mean value of the board is 130K...


The trick is that the Median value Vs. The Mean.


If you throw the amounts up in the air like dice, there are more sides on the dice that are less than $1000 than are greater.... That is the Median Value.

Of all the available amounts, the 26 sides on the dice. where is the value between the 13-14 sides, that is the Median.


The if you open your case, the value is most Likely Less than $1000. As you sit there wondering if the deal is good or not.... Remember... The value in your case is most likely $1000 or under.. The chance of it being over 100k is 1 in 4.


But if you take all the values and add them up and divide by 26, you get the Mean value. which is what the banker offers.... Rounded up to the nearest Thousand. Which gives you a Mean value of 130K.

But because the Median is so much larger than the Mean... they will make you an offer much higher than the Median value...


So, as you watch... Realize.. once they offer that mean value, that is probably as good as it will get.... Most people get to 100K... and very few get beyond...


so quit while you are ahead... You will get above 90k and you won't get above 200K... so quit when you hit that range... take half the value of the median home, and go home....

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