Aperson tosses a fair coin until a tail appears for the first time. if the tail appears on the nth flip, the person wins

2n

dollars. let x denote the player’s winnings. show that

e[x]=+[infinity]

this problem is known as the st. petersburg paradox.

(a) would you be willing to pay $1 million to play this game once?

(b) would you be willing to pay $1 million for each game if you could play for as long as you liked and only had to settle up when you stopped playing?