Exercise 4.11

Answers

Note that 31 = 24 + 23 + 22 + 21 + 1. Thus, Martin can play at most 5 rounds. For every possible win, Martin makes 1 dollar. If the game reaches the fifth round, it is also possible that Martin loses and walks away with nothing.

Let X be Martin’s winnings.

Then,

E(X) = i=15( 1 2i1) + ( 1 250) 0.97

User profile picture
2021-12-05 00:00
Comments