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Old 12-11-2003, 04:10 PM   #5 (permalink)
Pragma
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Location: Alexandria, VA
The math is correct - we did this in my stat class.

Assume that you have X dollars in cup A, and cup B has either 1/2 as much or twice as much.
Expected value from choosing cup B is (1/2)(1/2) * (2)(1/2) = 1.25

Therefore, repeating the same math for choosing cup A is also 1.25

So no matter which one you choose, you stand to gain more value by choosing the other.
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