Saturday, December 9, 2017

The Compulsive Gambler

You are approached by a compulsive gambler with the following proposal. You are to flip a fair coin four times. If heads and tails both appear twice each, he will pay you $11. If any other combination of heads and tails appears, you have to pay him only $10. Do you take the wager? Click below for the answer.


Jimbo Jones said...

SPOILER ALERT: Don't read this comment unless you've already worked the problem and/or looked at the solution.

A tad confused here -- /on average/, if I do this 16 times, I will win 6x ($66 in my pocket) and lose 10x (pay out $100). So every 16 runs, I lose $34. Seems like on average I lose $34/16 =~ $2.12 each time? Maybe the $3.12 is a typo?

Always enjoy the puzzles.

Bill the Lizard said...


Yes, you're right! Thank you for the correction.