pP is the negative logarithm of P, the probability of the ‘jackpot payoff’.
If money were of linear value, I would be ambivalent about investing $10k in a startup that had a .01 chance of making a million dollars; for P=.01, pP=2
pP is the negative logarithm of P, the probability of the ‘jackpot payoff’.
If money were of linear value, I would be ambivalent about investing $10k in a startup that had a .01 chance of making a million dollars; for P=.01, pP=2