4 ms·

I don't get your idea with sampling. It will work in practice. To see that yourself: write a program that repeats this experiment again and again, compute the

by foobar2020 11y ago

I don't get your idea with sampling. It will work in practice. To see that yourself: write a program that repeats this experiment again and again, compute the averages of the winnings, and you will see that they cannot be bounded by any constant. Or use a real coin and a piece of paper, though this will require a lot of patience.

AstralStorm 11y ago
While it cannot be bound by any constant, it is described by a function over number of tosses. When you introduce an entry price, you will suddenly get negative values in the beginning, and can reason again against expected value over time much better.