Puzzled
Wednesday 11 July 2012
St. Petersbug Paradox
Consider an event of tossing a coin until head appears. You earn 2^n $ if head appears on the nth trial. What do you expect to win? How much you would be willing to pay to play this game?
1 comment:
Unknown
10 August 2012 at 11:41
Google, it is a famous paradox. From here the concept of utility comes in picture
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Google, it is a famous paradox. From here the concept of utility comes in picture
ReplyDelete