How do you answer question 25?
25. Henry plays a game in which a coin is tossed 10 times. If it comes up heads then an extra half is added to his money. If it comes up tails then his money is halved. If starting with $5120 Henry gets exactly 5 heads out of 10 tosses then what is the maximum amount of money he can end up with?
25. Henry plays a game in which a coin is tossed
1 Answer
Feb 28, 2017
Explanation:
Here's an approach to question
Notice that winning multiplies Henry's holdings by
So it does not matter in what order he wins and loses - the result will be:
$5120⋅(32)5⋅(12)5=$5120⋅35210=$5120⋅2431024=$1215
Ouch!