Matrix scheme: Difference between revisions

Revision as of 19:27, 3 August 2024

Revision as of 16:57, 1 January 2025

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Additionally, the amount of time needed before a given individual will receive the product in question is often mistaken. In a matrix in which 10 people must sign up before cycling, the first person to join only needs nine additional sign-ups to cycle, but the second person needs 18 additional sign-ups: eight more for the person above them, and then 10 more for themself. The third person on the list likewise needs 27 additional signups: seven for the person on top of the list, 10 for the person directly above them, and then 10 for themself. The number of people required continues to grow for each new person joining the list. For the 10th person to cycle a total of 100 people would have to sign up, 1000 for the 100th, and so on.

Through this process, the matrix scheme generates substantial profit for its organiser. At the time of its popularity, for example, a PlayStation 2 cost a maximum of $299. After selling 10 $50 e-books, the organiser could make $500, and could purchase a PS2 for $299 to send to the first bidder while retaining a $201 of capital in return. But the schemer must take in consideration the actual price of an e-book which could be around 10$10. Finally, the buyer would have a profit of $101 (=201-10×10) This same process could be repeated every time the matrix cycles; if the matrix cycled 10 times, the organiser would have sold $5000 worth of e-books, of which $2990 would have been spent on 10 PS2s, leaving them with a revenue of $2010, and a profit of $1010.

==In queueing theory==