On the 26th of November, Ched changed the frequency of the BAG stock payout to occur, on average, once every 30 days.
[image: i.imgur.com]
Since there are 24 hours in a day and dividend payouts are distributed on the 48-minute mark of the hour, it means there are 720 possible payouts in those 30 days. (24 hours x 30 days = 720 possible payouts)
You should think of this as, "each hour I have a 1 and 720 chance of getting a payout and a 719 and 720 chance of NOT getting a payout."
It is much easier to calculate the chance of getting a payout over the course of a month by first calculating the chance of not getting a payout. Bear in mind 719/720 = .99681, so you essentially have a 99.861% chance of NOT getting a payout each hour. Thus, the chance of getting a payout is simply 1 minus that amount. (0.139% chance)
Here's where things get tricky. Over the course of 30 days, you have 720 different combinations of payouts that are possible. You could get unlucky and see 0 payouts on all 720 hours | You could get 1 payout on the 143rd hour of the month and no payouts on the other 719 hours of the month | You could get lucky that month and get 2 payouts... the first on the 156th hour and the second on the 593rd hour and no payouts on the other 718 hours of the month | etc.)
To calculate your chances of getting a particular number of payouts in a month, take the chance of not getting a payout (.99861^number of no payouts) x (0.00139^number of payouts) x the total possible combinations.
If you'd like to do the calculation yourself, see the picture below showcasing a spreadsheet containing the # of combinations and formulas!
[image: i.imgur.com]
Spreadsheet image with no formulas:
[image: i.imgur.com]
tl;dr - In any particular month you have a:
Hopefully this was helpful,
- Andyman
[image: i.imgur.com]
Since there are 24 hours in a day and dividend payouts are distributed on the 48-minute mark of the hour, it means there are 720 possible payouts in those 30 days. (24 hours x 30 days = 720 possible payouts)
You should think of this as, "each hour I have a 1 and 720 chance of getting a payout and a 719 and 720 chance of NOT getting a payout."
It is much easier to calculate the chance of getting a payout over the course of a month by first calculating the chance of not getting a payout. Bear in mind 719/720 = .99681, so you essentially have a 99.861% chance of NOT getting a payout each hour. Thus, the chance of getting a payout is simply 1 minus that amount. (0.139% chance)
Here's where things get tricky. Over the course of 30 days, you have 720 different combinations of payouts that are possible. You could get unlucky and see 0 payouts on all 720 hours | You could get 1 payout on the 143rd hour of the month and no payouts on the other 719 hours of the month | You could get lucky that month and get 2 payouts... the first on the 156th hour and the second on the 593rd hour and no payouts on the other 718 hours of the month | etc.)
To calculate your chances of getting a particular number of payouts in a month, take the chance of not getting a payout (.99861^number of no payouts) x (0.00139^number of payouts) x the total possible combinations.
If you'd like to do the calculation yourself, see the picture below showcasing a spreadsheet containing the # of combinations and formulas!
[image: i.imgur.com]
Spreadsheet image with no formulas:
[image: i.imgur.com]
tl;dr - In any particular month you have a:
- 36.762% chance of getting 0 BAG payouts
- 36.814% chance of getting 1 BAG payout
- 18.407% chance of getting 2 BAG payouts
- 6.127% chance of getting 3 BAG payouts
- 1.528% chance of getting 4 BAG payouts
- 0.304% chance of getting 5 BAG payouts
- etc. (As you can see, it will be extremely unlikely that you ever get more than 5 BAG payouts in a particular month)
Hopefully this was helpful,
- Andyman