Question

Peter and Tom play with a fair. The winner of a flip gains one point; the loser of the flip does not gain anything. They each contributed $25 into the pot before playing. They agree to flip the coin until one of them gains 10 points, and that person would get the $50 prize. After 15 flips, Tom has 8 points and Peter has 7 points, but before the next flip the play place is closed by the police for being a den of non-regulated gamblers. They are escape. Later they try to split the pot of $50. Both agree that Tom should get the larger share because he was ahead before the game was interrupted. Based on a probability tree, find the odds for Tom getting to 10 points before Peter, if the game were to be continued. Therefore what is the amount that Tom should receive?

Answer 1

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