1. Suppose you go to a casino with exactly 63 dollars. You play a game where the

Question

1. Suppose you go to a casino with exactly 63 dollars. You play a game where the probability of winning is 1/2. You have the following strategy: First, you bet 1 dollar if you win, you leave with 64 dollars. If you lose you bet 2 dollars. If you win you leave. If you lose you bet 4 dollars. You then continue this pattern, if you win you leave, if you lose you bet twice your last bet, until you have no more money. Let Y equal the amount of money you take home. Compute pY (y) and E[Y ]. Would you play this game everyday?

Explanation / Answer

                 =64 or 0

                   =64 or 0

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