This is my homework question, so I don't want straightforward answer of-course! I just don't understand how to write "probability of making overall profit?"
This is from st petersburg paradox, I'm trying to calculate after how many games this profit should be more than .5
Exact que: Suppose you play instead the following game: At the beginning of each game you pay an entry fee of $F. A coin is tossed until a head appears, counting n = the number of tosses it took to see the first head. Your reward is 2^n. After about how many games (estimate) the probability of making a profit overall is bigger than 50%
If someone can help me how to start, like is it calculating expected value of "something" or Defining this probability, that would be great!