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Fair entry fee per door when hunting a prize

Question

On a game show, one of 77 closed doors hides $200 and the rest are empty; you have no idea which. You open doors one at a time, each choice random among the unopened ones, until you find the money, and each door you open costs you xx dollars. What value of xx makes this a fair game?

Short answer

x=50x=50. The position of the prize in your random opening order is uniform on 1,…,71,\dots,7, so you open 44 doors on average (not geometric, since you never reopen a door). Fairness needs 4x=2004x=200, i.e. x=50x=50 dollars.

Adapted from QuantQuestions.io; question and answer rewritten by SelfMadeQuant.com.

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