You sit down with a well mixed deck containing A cards marked "+" and B cards marked "—". You may draw cards from this deck as long as you want, i.e., you can stop playing at any point. Each time you draw a + card you are given $1 and each time you draw a — card you have to pay $1. Cards are not
replaced after having been drawn.
What would be a fair amount to pay for the right to play (i.e., what is the expected payoff) and under what circumstance should a player cease drawing?
(In reply to A fair amount?
by Dej Mar)
Parenthetically (especially to Charlie, and to Josie if so inclined). I notice that Colin has just posted NS Enigma 1485 on his site -- and it refers to "a simplified version of the UK's National Lottery" -- with no explanation of how that functions. Might be a temporary distraction from this carnival game, which seems to be going in circles. I haven't yet seen the logic of a system of play which would continue drawing cards if the remaining B are greater than the remaining A. Maybe this is just the silly season, awaiting the arrival of Spring!