Two envelopes problem: Difference between revisions

Revision as of 02:19, 22 May 2024

Revision as of 14:21, 22 May 2024

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{{Cquote|Imagine you are given two identical [[envelope]]s, each containing money. One contains twice as much as the other. You may pick one envelope and keep the money it contains. Having chosen an envelope at will, but before inspecting it, you are given the chance to switch envelopes. Should you switch?

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Since the situation is symmetric, it seems obvious that there is no point in switching envelopes. On the other hand, a simple calculation using expected values suggests the opposite conclusion, that it is always beneficial to swap envelopes, since the person stands to gain twice as much money if hethey switchesswitch, while the only risk is halving what hethey currently hashave.<ref name=":5" />

==Introduction==