Puzzle: You are risk-averse person. There are Two games are offered to you.
- Game 1: You roll a dice once and you are paid one trillion times the number of dots on the upturned face of the dice.
- Game 2: You roll a dice one trillion times. For each roll, you are paid Rs 1 times the number of dots on the upturned face of the dice. Which game do you prefer?
The expected average payoff for both the games is Rs 3.5 trillion. However, the second game has much less volatility than the first.
Bernoulli’s theorem states that if you have a sample of independent and identically distributed random variables, as the sample size grows larger, the sample mean will tend toward the population mean so actual payoff will be much closer to the expected payoff in Game Two. As a risk-averse individual, you choose Game Two.
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- Game Theory (Normal form game) | Set 2 (Game with Pure Strategy)
- Game Theory (Normal-form game) | Set 3 (Game with Mixed Strategy)
- Game Theory (Normal-form Game) | Set 6 (Graphical Method [2 X N] Game)
- Game Theory (Normal-form Game) | Set 7 (Graphical Method [M X 2] Game)
- Puzzle 23 | (Days of month using 2 dice)
- Dice Throw | DP-30
- Maximum number of dots after throwing a dice N times
- Probability of getting more value in third dice throw
- Count ways to obtain given sum by repeated throws of a dice
- Combinatorial Game Theory | Set 2 (Game of Nim)
- Game Theory (Normal-form Game) | Set 4 (Dominance Property-Pure Strategy)
- Game Theory (Normal-form Game) | Set 5 (Dominance Property-Mixed Strategy)
- Puzzle 14 | (Strategy for a 2 Player Coin Game)
- Puzzle 69 |The Number Game
- Puzzle 73 | The Card Game
- Puzzle | (Round table coin game)
- Puzzle | (Something for the marmalade , Number Game)
- Puzzle | Game of Brussels Sprouts
- Number of ways to choose a pair containing an even and an odd number from 1 to N
- Choose points from two ranges such that no point lies in both the ranges
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