Question
Jon is at a blackjack table. He can place a bet of $20 or do nothing. His odds of winning a bet are 49.5%. Jon
Jon is at a blackjack table. He can place a bet of $20 or do nothing. His odds of winning a bet are 49.5%. Jon wants to maximize expected value.
a) What should he do?
b) Suppose that before placing a bet, Jon will be told whether he will win or lose with 100% accuracy. How much is this information worth to him?
c) Now suppose that Jon counts cards. If the deck is good, his odds of winning are 52%. If the deck is bad, his odds of winning are 49%. The deck is good 20% of the time. What is the value of this imperfect information for Jon?
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GMP Audit Trainer Good Manufacturing Practices Made Easy
Authors: Mr Brendan Cooper
1st Edition
1548711934, 978-1548711931
