by Xaston » Tue Aug 22, 2006 8:19 am
The envelope you choose has X dollars in it.
The other envelope can have two possible amounts of money.
2x or .5x.
By switching we get 2x-x = x more than first envelope
or
By switching we get x-.5x = .5x less than the first envelope.
Each outcome is equally likely. For all non zero amounts of money (which is stated in the problem, we shall neglect negatives as I don't think it's even possible to put negative amounts of money into an evelope (bills?)), it is +EV to switch.
Can someone please show me the flaw in my arithmatic and/or logic?
Boy, you got me confused with a man who repeats himself.