In the chain letter problem (see Example) find your expected profit if

• [math]p_0 = 1/2[/math], [math]p_1 = 0[/math], and [math]p_2 = 1/2[/math].
• [math]p_0 = 1/6[/math], [math]p_1 = 1/2[/math], and [math]p_2 = 1/3[/math].

Show that if [math]p_0 \gt 1/2[/math], you cannot expect to make a profit.