Investor Presentaiton

Step 4: Add probability-weighted outcomes Flip 1 Start Flip 2 p 1/2 P₁ =2 H p = 1/2 Flip 3 Flip n P2 2 1-p 1/2 1 p 1/2 1/2 1-p 1/2 p W3=23 P3 = 2-3 [H] p 1/2 1 p 1/2 W₁ =2" Pn 2 Let w = "winnings" and w₁ = "winnings if game ends on flip n' Pn = P("game ends on flip n") = (1 - p)n-1 p = 2-n [[ω] = Σ 1 Ψηn = n=1 122- = Σ11 = 0

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