Now, what’s interesting about this is that we can ask ourselves, what’s the average expected payout of this game, and the math is such that it’s basically like X equals 2 to the power of K, where K is the number of coin flips.
Your entire net worth, you should be willing to put up to play this game, even though $8 or $10 is maybe what you would hope or expect to end up with.
By the way, this is the same Bernoulli who has the Bernoulli principle, which is what explains why an aircraft wing produces lift like that Bernoulli effect or principle is the same guy.
