Subscribe: Comments on God Plays Dice: How much cash should you carry?
http://godplaysdice.blogspot.com/feeds/7629603323512036595/comments/default
Added By: Feedage Forager Feedage Grade B rated
Language: English
Tags:
didn put  doesn effect  don  effect mugged  effect  expected  might store  might  model  money  mugged  mugging  put  robbed  time might  time 
Rate this Feed
Rate this feedRate this feedRate this feedRate this feedRate this feed
Rate this feed 1 starRate this feed 2 starRate this feed 3 starRate this feed 4 starRate this feed 5 star

Comments (0)

Feed Details and Statistics Feed Statistics
Preview: Comments on God Plays Dice: How much cash should you carry?

Comments on God Plays Dice: How much cash should you carry?





Updated: 2017-12-18T01:43:37.824-08:00

 



You can allay concerns about mugging (and about mo...

2010-12-08T11:48:55.910-08:00

You can allay concerns about mugging (and about money burning a hole in one's pocket, perhaps to a lesser degree) by leaving most of the money at home and only carrying around one day's worth at a time. The "cost" to get money out of your stash on a daily basis is near zero.



David,I didn't put it in the model because I wasn'...

2007-09-07T07:44:00.000-07:00

David,

I didn't put it in the model because I wasn't trying that hard when I came up with the model.

I don't expect to be mugged five times a year. I have lived where I live for two years and have not been mugged; muggings do occur in my neighborhood, however.

The reason I don't take out $400 at a time is actually the same as yours; if I take out all that money I'll spend it. Modeling psychology is a lot harder, so I'm not trying to.



Why not put the expected-amount-lost-by-mugging in...

2007-09-07T07:36:00.000-07:00

Why not put the expected-amount-lost-by-mugging into the model? You then minimize

f(C) = as/C + Cr/2 + Cm/2

where m is the expected number of muggings per year. Based on the rest of your assumptions, and that your intuitive optimum value for C is 40, you expect to get mugged slightly fewer than 5 times per year. Seems high, but maybe you dress well and live in a rough area :)

The reason *I* don't take out $400 at a go is because I'd spend it much too quickly, not because I think I'd get mugged. I contend that that effect is harder to model.



Even if it doesn't effect whether you are mugged o...

2007-09-06T07:00:00.000-07:00

Even if it doesn't effect whether you are mugged once, having a lot of money, should you be mugged, might increase the odds that you'd be hit again. If you were only worth $3 and a pack of Wrigley the first time, you might not be worth their time to try again.



I think it might. I go into a store. I take out ...

2007-09-05T16:44:00.000-07:00

I think it might. I go into a store. I take out my wallet. Robber sees big wad of money in my wallet. Robber follows me out of the store and robs me.



I doubt that it actually increases your chance of ...

2007-09-05T16:41:00.000-07:00

I doubt that it actually increases your chance of being robbed. However, it definitely increases your expected losses due to robbery in any given period of time, since you're probably going to lose more money of you get robbed. And really, that's what one is worried about (at least, in this kind of model; in reality, there is an emotional cost of being robbed that one wants to avoid).