Unlimited dollar rerolls of a die
Question
Alice rolls a fair six-sided die. After each roll she may stop and collect the number showing, in dollars, or pay $1 to roll again; there is no limit on the number of rerolls. With optimal play, what is her expected net payout?
Short answer
. The game looks the same after every reroll, so the best strategy is a threshold: stop on or more. Its value solves , which gives for or and less for any other threshold.
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Open the worked solutionLessons behind this question
- Counting and Combinatorics
- Expectation, Mean, and Variance
- Conditional Probability, Total Probability, and Bayes' Rule
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