Math reveals the one game of chance you should always accept
SMRTR summary
A coin flip that could theoretically make you a billionaire sounds irresistible. But should you play?
The Saint Petersburg Paradox, dreamed up by mathematicians in 1713, describes a coin toss game where winnings double with every flip. The math suggests the expected value is infinite, meaning no stake is too high. You should always play.
Except, of course, that's absurd.
The catch is that the game only works if your opponent has unlimited money. In reality, everyone runs out eventually. Even challenging a billionaire like Warren Buffett, who'd go broke after roughly 38 rounds, the maximum reasonable stake works out to just $19.
It's a elegant reminder that mathematical theory and human reality don't always shake hands. Infinity looks great on paper, but at the casino, someone always has to pick up the tab.
SMRTR provides this summary for quick context. The original article belongs to Scientific American.
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