Summary: the problem with Pascal's Mugging arguments is that, intuitively, some probabilities are just too small to care about. There might be a principled reason for ignoring some probabilities, namely that they violate an implicit assumption behind expected utility theory. This suggests a possible approach for formally defining a "probability small enough to ignore", though there's still a bit of arbitrariness in it.
But it looks like the shape of the distributions isn't normal-like? In fact, that's one of the standard EA arguments for why it's important to spend energy on finding the most effective thing you can do: if possible intervention outcomes really were approximately normally distributed, then your exact choice of an intervention wouldn't matter all that much. But actually the distribution of outcomes looks very skewed; to quote The moral imperative towards cost-effectiveness:
I think you misunderstood what I said or I didn't explain myself well: I'm not assuming that the DALY distribution obtained if you choose interventions at random is normal. I'm assuming that for each intervention, the DALY distribution it produces is normal, with an intervention-dependent mean and variance.
I think that for the kind of interventions that GiveWell considers, this is a reasonable assumption: if the number of DALYs produced by each intervention is the result of a sum of many roughly independent variables (e.g. DALYs gained by helping Alice, DA... (read more)