The St. Petersburg paradox or St. Petersburg lottery is ... - dofaq.co
st. petersburg paradox

The St. Petersburg paradox or St. Petersburg lottery is ...

wikipedia - 05 Sep 2015
The St. Petersburg paradox or St. Petersburg lottery is a paradox related to probability and decision theory in economics. It is based on a particular (theoretical) lottery game that leads to a random variable with infinite expected value (i.e., infinite expected payoff) but nevertheless seems to be worth only a very small amount to the participants. The St. Petersburg paradox is a situation where a naive decision criterion which takes only the expected value into account predicts a course of

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