It’s an expected value calculation. What’s the value of being turned into a girl (G) that brings the EV here to zero. It’s 0.99 x $1m + 0.01 x G = 0. So G = -$99m.
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It’s an expected value calculation. What’s the value of being turned into a girl (G) that brings the EV here to zero. It’s 0.99 x $1m + 0.01 x G = 0. So G = -$99m.