Question: Consider the following three games Which one would you be

Consider the following three games. Which one would you be most likely to play? Which one would you be least likely to play? Explain your answer mathematically.
Game I: You toss a fair coin once. If a head appears you receive $3, but if a tail appears you have to pay $1.
Game II: You buy a single ticket for a raffle that has a total of 500 tickets. Two tickets are chosen without replacement from the 500. The holder of the first ticket selected receives $300, and the holder of the second ticket selected receives $150.
Game III: You toss a fair coin once. If a head appears you receive $1,000,002, but if a tail appears you have to pay $1,000,000.

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  • CreatedAugust 25, 2015
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