Indeed. Also, most people are risk averse, so they are happy to purchase insuran... | Hacker News

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		aes256 on Oct 20, 2012 \| parent \| context \| favorite \| on: I am a statistician and I buy lottery tickets Indeed. Also, most people are risk averse, so they are happy to purchase insurance with an EV (expected value) equal to less than the premium simply to avoid the gamble.

Evbn on Oct 20, 2012 [–]

Not indeed. Variance matters. Look at the hedge fund industry.

Expected return is insufficient if you can't recover from death to regress to the mean. So yeah, zombies shouldn't buy insurance

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