The magic money tree problem
.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty,.everyoneloves__bot-mid-leaderboard:empty{ margin-bottom:0;
}
6
$begingroup$
I thought of this problem in the shower, it was inspired by investment strategies. Let's say there was a magic money tree. Every day, you can offer an amount of money to the money tree and it will either triple it, or destroy it with 50/50 probability. You immediately notice that on average you will gain money by doing this and are eager to take advantage of the money tree. However, if you offered all your money at once, you would have a 50% of losing all your money. Unacceptable! You are a pretty risk-averse person, so you decide to come up with a strategy. You want to minimize the odds of losing everything, but you also want to make as muc...