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Old 06-02-2005, 03:58 PM
SGS SGS is offline
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Join Date: Sep 2002
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Default Fair game problem

Here is a extra credit problem for my stats class that I am struggling with. Any help? A fair game is when the EV of either bet is 0.

Jay and Ted decide toss a fair coin until either five consecutive heads or two consecutive tails appears. If two consecutive tails appears first Jay has agreed to pay Ted $15.00. How much should Ted agree to pay Jay if five consecutive heads appears first in order for this to be a fair game?

SGS
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