I am reading a book on probability and there is an interesting chapter on the St Petersburg game - where a coin is flipped until a head is landed and the prize is £2 if there is a head on the first throw, £4 is there is a head on the second flip, £8 for a head on the third etc. The idea of this game is it introduces a paradox since someone should be prepared to pay any amount to play since the expected yield is infinite.
However in the book it introduces the notion of changing the rewards to 2,4,6,8.... etc rather than the doubling in the original game. The book contends that even though the possible payouts increase without bound the calculation of the expected value yields a sensible answer of £4. It mentions that this is simple to calculate so omits the calculations. I have pondering this and cant see how the £4 has been arrived at - a entry price of £4 would be a fair price for the game but why? Any help greatly appreciated. I am sure I'm missing something to do with summing to infinity perhaps