Suppose you find a new game in your neighborhood casino. It costs $100 to play. Your bet is put into the pot. Your payoff is determined by 10 consecutive coin tosses.
- After each heads the pot increases 50%.
- After each tails the pot decreases 40%.
After 10 tosses, whatever's in the pot is yours.
You perform some quick calculations and find the expected value of the pot at the end of the game is about $162.88.
Would you play?
- Current Value