How much is a lottery ticket worth?

Let’s say you could win 1 million Euro when participating with a lottery. The odds are about 1 to a billion… How much would you pay for this lottery ticket?

Now let’s say that you’re in a lottery where you have a one-out-of-a-billion chance to lose 5% of all your assets. How much would you pay for a lottery ticket which insures you against this?

What you already have is worth more to you than what you might gain. Yet the same math & currency value applies to both gaining and losing. People tend to panic when there is a risk of losing something, despite how small it may be. Every change is seen as a potential loss and not a potential win.

A trader takes several risks on a daily basis, yet (s)he knows/judges the odds of every investement. Let’s say that they have a win ratio of 8 out of 10. When they invest their money into 10 opportunities, they should anticipate that 8 winners exceed the losses made at the two failed investments.

So how do you respond to risks? Do you fear or anticipate them?

Multitasking gets you nowhere or does it?

Lifehacker just featured an article called “Debunking The Myth of Multitasking“.

In a fast-paced business culture of “get everything done yesterday,” it’s easy to admire and reward those busybusy people who always seem to be juggling 14 things at once. But business coach Dave Crenshaw argues that the most common kind of multitasking doesn’t boost productivity–it slows you down.

I kinda forget the reference for this, but a while ago I read that, with each interruption, the brain will need about 15 minutes to get all things in order again. This so that you’re at the same situation that you were when you were interrupted.

Brain Magician

The next video is from Keith Barry at TED. He demonstrates how our brains can fool our bodies. I’m a believer of NLP yet this seems to go the next level, more towards the “magician”. Here I must say that I don’t believe in magic, that it’s always an illusion…