Re: Weekend Puzzle


I think we can solve this by treating n is a random variable.

In this case n is a negative binomial random variable, with 1 sucess in
n trials.
The mean of the negative binomial in this case is 2.

So that:
What is the expected value of winnings assuming many games are
played? 2

What entry fee would make it a fair game? 2*(2^(2-1))=4

What would you pay?
1 (I am cheap)

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