Break-even fee for opening boxes
Question
One of five boxes contains $150 and the other four are empty. You pay a fixed fee of dollars each time you open a box, and you keep opening boxes (in some order) until you find the money. What fee makes this a fair game?
Short answer
$50. The money is equally likely to be in the 1st, 2nd, …, 5th box you open, so you pay for boxes on average. Fairness needs .
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Open the worked solutionLessons behind this question
- Sample Spaces, Events, and the Probability Axioms
- Conditional Probability, Total Probability, and Bayes' Rule
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