Investor Presentaiton

The game is worth only $4 if u Flip 1 Flip 2 Flip 3 Flip n H p 1/2 u₁ = log2 2¹=1 P₁ =21 Start 1 p 1/2 = log₂(w) H p 1/2 =log₂ 22-2 P2=27 H p=1/2 U3=log2 23=3 P3=23 T 1 p 1/2 1 p 1/2 H p=1/2 1 p 1/2 Un=log2 2=n Pn=2 Let u = log2 ("winnings") and u₁ = log2 ("winnings if game ends on flip n") Pn P("game ends on flip n") = (1 - p)n-1p = 2-n E[u] == un Pn = n.b. npn n=1 - Σ1 1082 (2) 2-η = Σ 12-η = 2 P = (1-p)2 for 0≤ p < 1 n.b. 2 "utils" = $4

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