Description:
On Saturday July 26 to Monday July 28, Shopper’s Drug Mart is offering a new surprise points event.
Spend $75 and get either 18,500, 38,000, or 50,000 points!
The odds of getting the points are as follow:
176,000:185000 for 18,500 pts (95.1%)
6,300:185000 for 38,000 pts (3.4%)
2,700:185000 for 50,000 pts (1.46%)
Analysis:
The expected value (EV) for this event is:
(176000/185000 * 18500) + (6300/185000 * 38000) + (2700/18500* 50000) =
17,600 + 1,294 + 729 =
= 19623 points (or 261 points per dollar)
This is slightly better (6%) than the regular 18,500 points promo at 246 points per dollar and 24.3% better than the 20x the points even (spend $50 for 10,500 points)
So, how much is 19623 points worth?
If we assume that 382 to 432 points is worth $1, this the value of this promo is worth $45 – $51.
Again, this is assuming you maximize your purchases and don’t buy frivolous unneeded items!