I doubt anyone would say no, more so if the said offer came from a reputable casino (or even the individual who set up the bet really).
As for how much, if we were talking about funds I solely use for gambling, I can pretty much bet everything in it. Solely my betting funds though, I allocate to it monthly if I ever want to play. It's a one-time chance, after all. I can still use my money to play other stuff later on if I wanted/needed to, just that it'd be on a different month.
Topic: Betting strategy question - page 32. (Read 6114 times)
The computation is very attractive having a 17% chance to win 1200% is huge enough considering most dice offer 580% return for 17% chance. Definitely I will take the bet. I would allocate 10% or 1/10 of my bankroll to stake for every roll, this way I will have 10 tries to get a win and hope for that 10 tries can hit 1 for a profit. 
I you knew if was legit and on a site you regularly visit, I doubt anyone would be saying no.
If it were me, I'd consider anything up to a third of what you could afford to lose to be a reasonable bet for something like that - especially since you're not going to be able to do it again and have a chance to 2x or 1x your disposable funds. But I normally end up withdrawing from casinos while I still have a similar balance to what I've deposited so you might get a greater variety of answers below of people who may not.
If it were me, I'd consider anything up to a third of what you could afford to lose to be a reasonable bet for something like that - especially since you're not going to be able to do it again and have a chance to 2x or 1x your disposable funds. But I normally end up withdrawing from casinos while I still have a similar balance to what I've deposited so you might get a greater variety of answers below of people who may not.
Hypothetical scenario:
You can bet on a single dye roll (choosing a number between 1-6), but if you win you get paid x12 of your stake (instead of x6).
So the Expected Value is positive (see example below), but you'd still have 83% chance of losing.
1 - will you take that bet?
2 - if so, what % of your available funds would you put at stake (i.e. funds you're willing to gamble and afford to lose)?
Again, this is a single, non-repetitive bet.
-----------------------
Simulation for BTC1 bet:
EV = (83% x -BTC1) + (17% x BTC11) = +BTC1.04
Edit: calculation corrected, credit to Saint-loup
Edit2:
A somewhat related video on a subject on unreasonable risk aversion. Good watch and not very long:
You can bet on a single dye roll (choosing a number between 1-6), but if you win you get paid x12 of your stake (instead of x6).
So the Expected Value is positive (see example below), but you'd still have 83% chance of losing.
1 - will you take that bet?
2 - if so, what % of your available funds would you put at stake (i.e. funds you're willing to gamble and afford to lose)?
Again, this is a single, non-repetitive bet.
-----------------------
Simulation for BTC1 bet:
EV = (83% x -BTC1) + (17% x BTC11) = +BTC1.04
Edit: calculation corrected, credit to Saint-loup
Edit2:
A somewhat related video on a subject on unreasonable risk aversion. Good watch and not very long:
Jump to: