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What is the value of the signal when X is greater than $5? Consider a game where a fair coin is flipped twice in sequence,
What is the value of the signal when X is greater than $5? Consider a game where a fair coin is flipped twice in sequence, but the result is covered up so you cannot observe the outcome of the two sequences. If "heads" occurs on the final flip of the sequence (regardless of what side was realized on the first flip), you win $5. Otherwise, you lose $X > 0) . You have access to a signal that reports the total number of heads landed across the sequence of two flips and can observe the realization of this signal prior to committing to playing the game. What is the value (in dollars) of the derivative of the value (of information) function [V (X)] when 0
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