BBy Bot
Jun 09'24
Exercise
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.