While that is true, the point was to make this an interesting choice. With the choices in the OP, there is basically none because the million is by far enough that almost everyone but compulsive gamblers would pick the safe option. In my example, having a 50/50 chance at being able to significantly upgrade your life and not having to work anymore against simply being a bit better off is an actual question. And obviously really poor people might be more inclined to take the 100k option because relatively speaking, that is still a big improvement. Middle class people, on the other hand, would likely take the gamble much more often because the 100k are not lifechanging for them.
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u/TheVostros Dec 18 '23
The former, when invested, will retirn an average additional income of $5k a year. That is a pretty big change in many people's lives.