This is a discussion on coin brainteaser..please help within the General Trading Chat forums, part of the T2W Archive category; We each flip three fair coins. I offer to pay you \$1 if we do not get the same amount ...

 Mar 15, 2011, 4:55am #1 Joined Mar 2011 coin brainteaser..please help We each flip three fair coins. I offer to pay you \$1 if we do not get the same amount of heads, if you agree to pay me \$2 if we do (get the same amount of heads). Will you agree to play this game? I haven't had prob. in a couple years and can not get my head around this question..any help would be great
 Mar 15, 2011, 10:22am #2 Joined Jan 2007 Re: coin brainteaser..please help well... probability of each getting the same number is 5/16 so I expect to lose \$1/16 each time I play so no... Not to mention it's a really **** game so I would say no anyway __________________ World's leading STIRs chatroom - www.propboards.com - register, then click on chat. Don't let the lack of posts on the forum put you off - the action happens in the chatroom. Targeted at locals, but hedge funds, brokers (including IDBs), market makers, and a few sizable amateurs are all represented. When it's quiet, banter is encouraged and anything goes. No nuisance spread betters please. Anyone else welcome.
 Mar 15, 2011, 10:35am #3 Joined Jan 2011 Re: coin brainteaser..please help I have E(X) = (11/16 * \$1) - (5/16 * \$2) = +\$1/16 so not as bad a game as before but still not great.
 Mar 15, 2011, 12:33pm #4 Joined Jun 2008 Re: coin brainteaser..please help Seems like a **** version of this game: The pot starts at £1. A fair coin is tossed. For every head, the pot is doubled. The game ends when a tail appears - you keep everything in the pot. How much would you be willing to pay to play this game?
 Mar 15, 2011, 12:57pm #5 Joined Mar 2011 Re: coin brainteaser..please help Thanks for given these info to all members dear friends,
Mar 15, 2011, 1:01pm   #6

Joined Jun 2008

I make it 5/16 chance to get the same amount of heads, so 11/16 a different amount.

E(X) = 1(11/16) - 2(5/16) = +\$1/16 expectancy.

Quote:
 Originally Posted by DashRiprock so not as bad a game as before but still not great.
That depends how many times you play it :P

Mar 15, 2011, 1:08pm   #7

Joined Jan 2007

Quote:
 Originally Posted by mb325 Seems like a **** version of this game: The pot starts at £1. A fair coin is tossed. For every head, the pot is doubled. The game ends when a tail appears - you keep everything in the pot. How much would you be willing to pay to play this game?
That's st petersburg paradox no?
__________________
World's leading STIRs chatroom - www.propboards.com - register, then click on chat. Don't let the lack of posts on the forum put you off - the action happens in the chatroom. Targeted at locals, but hedge funds, brokers (including IDBs), market makers, and a few sizable amateurs are all represented. When it's quiet, banter is encouraged and anything goes.

No nuisance spread betters please. Anyone else welcome.

 The following members like this post: mb325
 Mar 15, 2011, 1:21pm #8 Joined Sep 2008 Re: coin brainteaser..please help REAL brain teaser... How much head do I get for my \$? Peter __________________ ************************************************** ********************* I'm not into Fundamentals. I'd trade anything for T & A ************************************************** *********************