Question 45
A croupier in a casino offered a gambler 100 dollars if he could throw a 6 with one throw of a standard die. If he failed, he was allowed another throw; if he failed again, he was allowed a 3rd throw. The 100-dollar prize can be won only once, and the stake is not returned. How much should the gambler pay for this chance to be a fair bet?
HINT: one throw: chance 1/6; two throws: 2/6; three throws: 3/6, which is even money. So the stake should be 50 dollars... or should it? Explain.
HINT: one throw: chance 1/6; two throws: 2/6; three throws: 3/6, which is even money. So the stake should be 50 dollars... or should it? Explain.