Message-ID: <30950477.1075852710497.JavaMail.evans@thyme> Date: Sun, 13 May 2001 19:23:00 -0700 (PDT) From: john.arnold@enron.com To: epao@mba2002.hbs.edu Subject: RE: waiting Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: John Arnold X-To: epao@mba2002.hbs.edu X-cc: X-bcc: X-Folder: \JARNOLD (Non-Privileged)\Arnold, John\Sent Items X-Origin: Arnold-J X-FileName: JARNOLD (Non-Privileged).pst probability * payout = 1 heads .5 0 = 0 tails 2 heads .25 1 = .25 tails 3 heads .125 2 = .25 tails 4 heads .0625 4 = .25 tails 5 heads .03125 8 = .25 "Eva Pao" on 05/13/2001 03:23:47 PM Please respond to To: cc: Subject: RE: waiting which game is that? -----Original Message----- From: John.Arnold@enron.com [mailto:John.Arnold@enron.com] Sent: Sunday, May 13, 2001 5:16 PM To: epao@mba2002.hbs.edu Subject: Re: waiting Expected value of game = 1/2 * 0 + 1/4 * 1 + 1/8 *2 + 1/16 *4 +1/32 * 8+.... = 0 +.25 +.25 +.25 +.25 +... = infinity "Eva Pao" on 05/13/2001 03:11:46 PM Please respond to To: cc: Subject: waiting -----Original Message----- From: John.Arnold@enron.com [mailto:John.Arnold@enron.com] Sent: Sunday, May 13, 2001 4:37 PM To: epao@mba2002.hbs.edu Subject: Re: Extra credit rules to a game: You flip a coin. If you get tails you win 0. if you get heads, i give you $1. Keep flipping until you get a tails, at which point you walk away with the money. however, each heads you get after the first you double your money. So if you flip heads 3 times and then tails, you get $4. What's you bid/offer on playing this game? (would you pay $.5 to play? $1? $2? what you charge me play against you?)