Is there no end to circumstances that ask whether we should switch?

This one might take some thought.

Your rich uncle places a sum of money into an envelope, twice that amount into a second envelope, places them both into a black bag and invites you to draw one out of the bag. You open the envelope that you draw and find $1000. You now know the envelope in the bag contains either $500 or $2000. Your uncle gives you the option to take the other envelope in exchange for the one you drew.

Calculate the expected gain that comes from switching.

## Question

## bonanova 85

Is there no end to circumstances that ask whether we should switch?

This one might take some thought.

Your rich uncle places a sum of money into an envelope, twice that amount into a second envelope, places them both into a black bag and invites you to draw one out of the bag. You open the envelope that you draw and find $1000. You now know the envelope in the bag contains either $500 or $2000. Your uncle gives you the option to take the other envelope in exchange for the one you drew.

Calculate the expected gain that comes from switching.

## Link to post

## Share on other sites

## 22 answers to this question

## Recommended Posts

## Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.