Lotteries in real life have negative expected values, so they're usually a bad idea.
The cost isn't worth the potential benefit and its likelihood.
If there was a lotterry (you could buy only one) that costed $100 with a 0.1% chance of $1000000 , i wouldn't take it. If however if there was a lotterry where each participant won $1000000 and it costed $1000 i would take part in it. As would most humans.
Well, you should. The expected value is greater than the cost of the ticket. This means that on average, you stand to gain more if you partake in the lottery.
The cost is worth the potential benefit and its likelihood.
I fail to see how Omega being correct %100 of the time changes the value of the boxes at the exact second that I choose. It is not trying to trick the alien or anything related. If you believe that your choice will influence the amount of money put in the boxes, choose box B. But otherwise, the money is already in there and will not change, and box B will have either the 1 million or nothing. Again, I'd fully expect to find 1,000 dollars when I choose both boxes, but I know that my choice didn't cost me one million dollars- the alien chose not to put the money in box B beforehand.
So the question instead becomes do you believe that reality changes as a result of your choice?
On the contrary, your choice is synonymous with reality. If you choose box B, then the money
will have been there (not magically spawn), if you choose both boxes, then the money
will never have been there. This is because Omega predicted your choice very well. If you were to suddenly change your mind and switch your answer, Omega would have likely predicted that as well.
These are contradictory statements.
Sorry for the confusion. This is what I meant:
The claim "Omega has been right 100 times out of 100 times. Therefore, he has had 100% success rate in the past." does not help us analyze the future at all; only the past. It would only be useful if we were to go back into the past and make decisions there(then).
The claim "Omega has been right 100 times out of 100 times. Using a statistical analysis based on the data, this shows that his success rate
is most likely 99% or greater." actually helps us make predictions about the future; about what his success rate will continue to be.
Thus, it's irrelevant that he's had 100% success rate in the past, since that's not the number we need. Rather, it relevant that he will likely have 99% or greater success rate in the future, since that's the number we use to analyze the situation (especially for creating expected values).
How is taking that kind of a gamble the "rational choice"? You're assuming that a choice's value is equal to its expected value until it has been chosen, and I don't think that's necessarily true.
That is true (other than the second part which I don't really get): a choice's value is equal to its expected value. A 10% chance of gaining $10 has a value of $1 for analytical purposes.
Would you spend 1$ for a 99% chance of gaining $100? What about spending $10? $20? $50? $99? $99.50?
Every cost up to $99 given you a positive expected value, making you
on average wealthier. Every cost beyond $99 gives you a negative expected value, and the opposite is true (thus it's a bad idea).
Of course, and I think a problem with the original question is that there's too little money involved. My immediate reaction to a scenario like this is to ignore the $1,000 and try to maximize my chances of getting $1,000,000, but that doesn't mean that doing so will net me the most money possible. I presume getting the most money is the goal here, and (pre-Perf's solution) taking both boxes will ALWAYS get you more money than simply taking one.
See my previous post where I analyzed the expected value. Taking both boxes will
sometimes get you more money, and
on average get you much less money.