This riddle was originally posted on the MA375 Rhea website for the class of Fall 08. Here is the original link. Special thanks to Norlow for posting the riddle; however, it was left unanswered on the page so I thought I'd bring it here for all to see. I included the solution that I came up with if you are stumped. Enjoy!
So, there is this Carnie (small hands, smells of cabbage) that devised this new game at the carnival and wants to cheat you out of your money. You go to play this game. The game works as such:
You pay him a certain amount before you start flipping the coin.
The first round you flip a fair coin. If it comes up heads, you get paid $2. However, if it lands tails, you are allowed to go to the next round.
The second round works the same as the first. If it comes up heads, you get paid *$4*. But if it lands tails, you go on to the next.
The third round pays $8 dollars and so on.
If you were allowed to play this game as many time as you wanted, what is the maximum you would pay to start the game? (What is the average payout?)
You have to pay him a certain amount (like 1000 dollars) to start. The goal is to figure out the most you would pay--Norlow 10:32, 6 December 2008 (UTC)
