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St. Petersburg Paradox

Probability puzzles require you to weigh all the possibilities and pick the most likely outcome.

 

Puzzle ID:#37843
Fun:*** (2.29)
Difficulty:*** (2.6)
Category:Probability
Submitted By:spinnercatAus*****
Corrected By:Mad-Ade

 

 

 



You are offered a game to play with a single fair coin. It costs 20 dollars to play this game, but you can win much more than that. The way it works is that you continue to flip the coin until you get tails. For every heads you get before that, your payoff doubles. For example, if you get:
Heads
Heads
Tails, then you would earn 4 dollars.
In other words, you get: 2^heads dollars after you play. The question is: would you come out with more or less money after you played this game an INFINITE number of times? Remember, each game costs 20 dollars!




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