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kamebazooka- 06-29-2008
Anti-AIDS pizza -- even better than Alex rings?
Here is a kind of math puzzle: I sell a Pizza I claim cures AIDS for $50. If you first get an AIDS test that shows positive, I sell you my ANTI-AIDS PIZZA. When you get results of second AIDS test many weeks later, if you still have AIDS, I give you refund + $20. Now here is the twist: the ANTI-AIDS PIZZA is just a normal pizza. There is absolutely nothing different about this pizza than any other pizza. Under these conditions, (assuming I don't get shut down by police) I stand to make a healthy profit. 1. Can you explain how? 2. At the current penalty for $20 for each "non-cure," I still make a profit. At what penalty do I expect to break even? (Assume each pizza costs me $10 to make)

Knightwriter- 06-29-2008

Idiot.

TwistinUnderSchizophrenia- 06-29-2008

Yeah...you'd be shut down in no time. And it would be pretty sh1tty of you to do such a thing. I just hope nobody would fall for it.

jc- 06-29-2008

Well first of all PIZZAS dont cost $50, if its a normal PIZZA like any other then id buy it at my local PIZZA shop for around $6.50 -$7.50

TwistinUnderSchizophrenia- 06-29-2008

Well first of all PIZZAS dont cost $50, if its a normal PIZZA like any other then id buy it at my local PIZZA shop for around $6.50 -$7.50 He's saying that he would make the people think it's not an ordinary pizza. He would be lying and decieving them, and make them think there's some special ingredient that would cure their AIDS.

kamebazooka- 06-29-2008

I made the amount $50 to give a good margin for profit. Remember if your 2nd AIDS test returns positive, I have to return the $50 + $20. So each customer I do not "cure" costs me $20. But actually, you can lower the price of the pizza below $50. The puzzle is how much you can lower it before you can expect to break even (that is, no profit). Alternatively, you can increase the price of the consolation. Instead of $20 penalty, I could pay out $50 or $100. At what point does it become unprofitable? I think Genius/Businessman Alex might know the answer. BTW, it is obvious this is a hypothetical math problem. I do not suggest anyone to go out and do this for real, but if Alex starts selling Gorgeus Pizzas...

Francois Tremblay- 06-29-2008

The solution to the problem hinges on the percentage of people who would ask for a refund. Typically few people, even people who realize they have been scamm-ed, will ask for a refund. However, the fact that AIDS is a condition that cannot go in remission does make the scenario rather unlikely. If it was an anti-arthritis pizza, for instance, customers would have a much higher level of confidence, since arthritis is the kind of things that has ups and downs. Cancer is another. Beauty, of course, is another. :)

TwistinUnderSchizophrenia- 06-29-2008

Yeah, you would become extremely poor. If anybody believed that this pizza worked, they would definitely get tested for the second time. Once they realize they're not cured, they'd want their money back plus the $20. No one is going to buy that pizza, thinking they could get cured, and not get tested again to see.

frank2008- 06-30-2008

Scientists say Pizza is powerful to prevent throat cancer. Seriously. Did you know it? It seems it takes away cancer cells from your throat. So after you smoke tobacco or marijuna it's good idea you eat a pizza.

jc- 06-30-2008

He's saying that he would make the people think it's not an ordinary pizza. He would be lying and decieving them, and make them think there's some special ingredient that would cure their AIDS Ah yes i see, went to bed late yesterday was not paying too much attention. Ok i see your point KAMEBAZOOKA, i guess people would just about go for anything as long as you tell them it would make them into a supermodel but then again you would have to get more than a few people to try this PIZZA and comment on it like ALEX did with his rings and GP+SCF..

kamebazooka- 06-30-2008

The solution to the problem hinges on the percentage of people who would ask for a refund. Typically few people, even people who realize they have been scamm-ed, will ask for a refund. This is a good real-world consideration, but for the purposes of this puzzle, you can assume that everyone who gets a 2nd HIV positive result will ask for and get their refund + $20. I picked $50 for the pizza price because I don't remember the exact math behind it, so you know that the actual breakeven number is much lower. You will still make a hefty profit this way. How? I think Alex knows, and maybe Dr Phelps...

Francois Tremblay- 07-01-2008

If this is supposed to be purely mathematical, then you've stumped me. I don't see how it works, unless this is a Ponzi-style mechanism whereby you make more money from new people entering the system than you lose from the people leaving the system. In that case, the profit would depend on the growth rate of the user base.

kamebazooka- 07-02-2008

No ponzi scheme. Hint: are AIDS tests 100% accurate? If it was, then this could not work.

TwistinUnderSchizophrenia- 07-02-2008

I don't think any AIDS tests are 100% accurate. There is a test that does give alot of false positives, but never false negatives. That's the only way I could see it working in the least.

CerealRapist- 07-02-2008

oh, i get it. it's an alex chiu-style con. bravo, kamebazooka, bravo!