The envelope problem, and a possible solution

[PairTheBoard]

Look at this from a Gambler's point of view. You are told about the two envelopes and asked to choose one. You are offered these Proposition Bets.

1. Given 3-2 odds, would you be willing to bet $10 that your envelope contains the smaller amount?

2. Given 3-2 odds, would you be willing to bet the amount in your Envelope that it is the smaller amount?


1 is a good bet for you while 2 is not. Do you see why?


PairTheBoard