Games
Russian Roulette
Q. What's the probability of winning (surviving) a game of Russian Roulette by volunteering to go first (pull the trigger with gun at your head) where each player spins the barrel before pulling the trigger ?
A. Let x be the probability of surviving by going first. The probability of surviving going first is 5/6 multiplied by the probability that the other player loses (which is 1-x because the other player faces the same game).
So a little less than half!
Dice throws
Q. What's the fair value of a game where you get x$ for a throw of a dice where x is the number (1-6) that results from the throw of the dice ?
A. 3.5 which is the expected value (mean) of the numbers 1-6.
Q. What's the fair value of a game where you have the option of throwing again if you don't like your first throw, but have to accept the outcome of the second throw ?
A. You're only going to go for a second throw if your first throws up < 3.5. You'll keep the result of your first throw if it's 4,5 or 6 (probability of which is 0.5). You're only going to go for a second throw if your first throws up < 3.5 which also has probability 0.5. The expected value of the second throw still remains 3.5.