Tuesday 16 August 2016

Which offer is better?

Problem

1) You are to make a statement. If the statement is 
true,you get exactly $10. If the statement is false, 
you get either less than or more than $10 but not 
exactly $10.
2) You are to make a statement. Regardless of whether 
the statement is true or false, you get more than $10.
 
Answer: 1
 
Solution Approach:
You should take offer #1, because you can guarantee 
yourself an arbitrarily large amount of money, simply 
by using the following as your statement:

“I will receive neither $10 nor $1000.”

If we assume the statement is true, this leads to a 
contradiction because you would receive $10, by the 
rules.

If we assume the statement is false, then to satisfy 
the falsity of the statement, you must receive either 
$10 or $1000. But since you cannot receive $10 if the 
statement is false, you must receive $1000.

Of course you can use any amount in place of “$1000.”

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