alt Hacker NewsWhat's the ev for going to college once you factor in graduation rates?
People that get two or three years of college debt and no diploma have a big hole to fill and a small shovel.
Anyway, I think ev isn't the right tool to model gambling behavior; dollar utility isn't linear. It's more about a small spending for a large potential. But then you get into repeated small wagers and such.
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> What's the ev for going to college once you factor in graduation rates?
Very positive (IRR ~9%). It's been studied extensively: https://openknowledge.worldbank.org/server/api/core/bitstrea...
If I borrow a lot of money to start a business and then don't start the business I would also be in the hole. So, don't do that?
you can always go back and finish later...that's what I'm doing.
College graduates make over $1 million in their lifetime compared to high school graduates.
> Anyway, I think ev isn't the right tool to model gambling behavior; dollar utility isn't linear.
You're right. The more money you have, the less utility it gives you, which makes gambling for a windfall an even worse decision. Worse still if you include taxes.