Reflipping for value
You flip fair coins at once. You may then choose any subset of them and reflip each of those once (a single reflip per chosen coin). At the end you are paid $ for every coin showing heads. Playing optimally, what is the fair value of this game (in dollars)?
Show hints (2)+
- Should you ever reflip a coin that's already heads? Decide the optimal policy per coin.
- Reflip only tails: each coin ends heads with probability . Multiply by .
Answer
Reveal answer →Final answer
6
Create a free account to see the full worked solution and track your progress.
Interview format: Market Maker, Numerical Reasoning Tests