Imagine you have a special dollar. You can play a game with me. I'll toss a coin and if you call it right, you have two dollars; if not, you take home only one dollar. You can keep playing if you call correctly, doubling your money each time. How much would you pay for the special dollar?
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Don't know man, approx. 3 bucks or sth. dawg? Tried to build a payout matrix with estimated payout after round 1 of 1.5 bucks and so on
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I think if you take a sum of the expected values it adds up to $2
Maximum would be $1.50 cuz that’s expected value after 1st toss … don’t trust probabilities in the short term.
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