Last post wins.

[Kamikaze28]

(07-04-2012 01:46 AM)phrenikos Wrote:  I've got one for you non-stat majors (St. petersburg paradox):

Let's say I offer you a game: A coin is tossed at every stage. The pot starts at 1 dollar and is doubled every time a head appears. When a tail appears, the game ends and you win the money in the pot.

(i.e. You win 4 dollars if two heads appear, and then a tail appears after)

How much are you willing to pay for this game?

That's clever - the computer science part of me calculated the expected winnings and therefore wants to play at any cost, because the expected winnings is infinite. My gut however wouldn't pay more than $8. And in reality, I don't gamble for money and wouldn't play at all.