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“mcs” — 2017/3/3 — 11:21 — page 838 — #846<br />

838<br />

Chapter 19<br />

Random Variables<br />

D<br />

H<br />

T<br />

T<br />

H<br />

D<br />

D<br />

Figure 19.8<br />

Sample space tree <strong>for</strong> coin toss until two consecutive tails.<br />

longer on average to turn up, your opponent agrees that he has the advantage. So<br />

you tell him you’re willing to play if you pay him $5 when he wins, and he pays<br />

you with a mere 20% premium—that is $6—when you win.<br />

If you do this, you’re sneakily taking advantage of your opponent’s untrained intuition,<br />

since you’ve gotten him to agree to unfair odds. What is your expected profit<br />

per game?<br />

Problem 19.13.<br />

Let T be a positive integer valued random variable such that<br />

where<br />

(a) Prove that ExŒT is infinite.<br />

(b) Prove that ExΠp T is finite.<br />

Exam Problems<br />

PDF T .n/ D 1<br />

an 2 ;<br />

a WWD X<br />

n2Z C 1<br />

n 2 :<br />

Problem 19.14.<br />

A record of who beat whom in a round-robin tournament can be described with a<br />

tournament digraph, where the vertices correspond to players and there is an edge

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