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What is the Expected Value? (Posted on 2025-01-13) Difficulty: 3 of 5
A and B each put 10 coins in the pot. A then takes a coin from the pot and tosses it, while B calls heads or tails. If B’s call is correct, he takes the coin and keeps it; otherwise, A keeps the coin. B then takes a coin from the remaining pot and tosses it while A calls heads or tails.

The play continues in this way until one player has accumulated 10 coins, whereupon he wins the game and takes all the coins remaining in the pot. At one point in the play, A has six coins, while B has only four. What is A’s probability of winning?

When the situation occurs in a game such that one player has won six coins while his opponent has won four coins, what is the expected value of the winnings (net number of coins) of the player with six coins?

No Solution Yet Submitted by K Sengupta    
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Solution Solution | Comment 1 of 3
wlog, the starting condition is:
    (A,B,P) = (6,4,10), where P is the pot.
If A ultimately wins, he can do so in as few as 4 flips or as many as 9 flips.  If there are 10 more flips, and A has not won, it means B has won.
But in calculating the number of ways A can win in n more flips, keep in mind that the final flip must be a correct call for A.  So, for example, if A wins in 6 more flips getting 4 more correct calls, the number of ways is not comb(6,4) but rather comb(5,3)
n    p(A wins)
4  (1/2)^4 * comb(3,3)
5  (1/2)^5 * comb(4,3)
6  (1/2)^6 * comb(5,3)
7  (1/2)^7 * comb(6,3)
8  (1/2)^8 * comb(7,3)
9  (1/2)^9 * comb(8,3)

The sum of the above probabilities is the probability that A wins, given the 6 vs 4 advantage.

n  winnings 
4  10 + 6
5  10 + 5
6  10 + 4
7  10 + 3
8  10 + 2
9  10 + 1
... the winnings is always 20-n

Probability A wins 0.74609375 

The requested expected value of A's winnings is:
 9.9375

If we are looking at a conditional probability where we are assuming that A wins, then the expected winnings given that A wins is 
 13.319371727748692

-------------
prob_A_wins = 0
expected_winnings = 0

for flips in range(4,10):
    this_prob = (1/2)**flips * combin(flips-1,4-1)
    prob_A_wins += this_prob
    expected_winnings += this_prob * (20-flips)

exp_winnings_Awins = expected_winnings / prob_A_wins

print('Probability A wins', prob_A_wins, ' ')
print('The requested expected value of A's winnings is: ', expected_winnings)
print()
print('If we are looking at a conditional probability where we are assuming that A wins, then the expected winnings given that A wins is ', exp_winnings_Awins)

Edited on January 13, 2025, 9:07 am
  Posted by Larry on 2025-01-13 09:06:50

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