is the EV for this game really infinity?
just did this in econ class but i didn't think it was true....
i thought i might have missed something so 2p2, analyze this game with me
basically we'll flip coins:
If you get head on the first flip, i will give you 2 dollars
if you get tails on the first flip and get head on the 2nd flip, i will give you 4 dollars
if you get tails on the first 2 flips and get head on the 3rd flip i will give you 8 dollars
if you get tails on the first N-1 flips and get head on the nth flip, i will give you 2^(n) dollars
what is the EV for this game?
the answer i got in class was infinity
because the EV is (1/2)x2 + 1/4 (4)+ 1/8 (8) +.... + 1/(2^n) x 2^n
hence the sum of all the EVs = infinty
there seems to be a flaw in the logic here and i can't point it out and it's bugging the crap out of me
solve this for me 2p2
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