How much should we pay-be a fair game


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Q: A fair coin is flipped until the first tail appears; we win $2 if it appears on the first toss, $4 on the second and in general $2^k if it first appears on the kth toss. Let the random variable X denote our winnings. How much should we pay in order for this to be a fair game.

(a) What if the amounts won are c^k instead of 2^k where 0

(b) the amounts won are log 2^k

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