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Let's imagine ourselves in some kind of strange casino
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with very strange games
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And you walk up to a table, and on that table
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there is an empty bag
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and the guy who runs the table says, "Look, I've got some marbles here,
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three green marbles, two orange marbles, and I'm gonna stick them in the bag
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And he literally sticks them into the empty bag
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To show you that there is truly three green marbles, and two orange marbles.
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And he says, "The game that I want you to play, or if you choose to play,
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is you're going to look away, stick your hand in this bag
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The bag is not transparent
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Feel around the marbles, all the marbles feel exactly the same
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And if you're able to pick two green marbles
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If you're able to take one marble out of the bag, it's green, you put it down on the table
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then put your hand back in the bag
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And take another marble, and if that one's also green
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Then you're going to win the prize of
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You're going to win one dollar if you get two greens.
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Well you say, "this sounds like an interesting game,
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How much does it cost to play?"
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And the guy tells you it is 35 cents to play.
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So obviously, fairly low stakes casino.
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So my question to you is, would you want to play this game?
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And don't put, you know, the fun factor into it
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Just economically, does it makes sense for you to actually play this game?
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Well let's think through the probabilities a little bit.
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So first of all, what's the probability that the first marble you pick is green?
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What's the probability that first marble is green?
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Actually, just let me write first green
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Probability first green
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Well, the total possible outcomes
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There's 5 marbles here all equally likely
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So there's 5 possible outcomes
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3 of them satisfy your event that the first is green
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So there's a three-fifths probability that the first is green.
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So you have a three-fifths chance
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Three-fifths probability, I should say
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That after that first pick you're kind of still in the game.
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Now, what we really care about is your probability of winning the game.
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You want the first to be green, and the second green.
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Well let's think about this a little bit. What is the probability
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that the first is green
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I'll just write "g" for green
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And the second is green.
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Now, you might be tempted to say
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"Oh well the second being green is the same probability,
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it's three-fifths. I can just multiply three-fifths times three-fifths
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And I'll get nine over twenty-five
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Seems like a pretty straight-forward thing."
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But the realization here is what you do with that first green marble.
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You don't take that first green marble out, look at it, and put it back in the bag.
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So when you take that second pick, the number of green marbles that are in the bag
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depends on what you got on the first pick.
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Remember, we take the marble out
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if it's a green marble or whatever marble it is
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Whatever after the first pick, we leave it on the table.
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We are not replacing it, so there's not any replacement here.
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So these are not independent events.
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Let me make this clear, not independent.
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Or in particular, the second pick is dependent on the first.
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Dependent on the first pick.
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If the first pick is green, then you don't have three green marbles in a bag of five
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If the first pick is green, you now have two green marbles in a bag of four
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So the way that we would refer to this is the probability of both of these happening
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Yes, it's definitely equal to the probability of the first green
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times, now this is kind of the new idea, the probability of the second green
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given, this little line over here
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just this straight up, vertical line just means given
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Given, this means given
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Given that the first was green.
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Now what is the probability that the second marble is green given that the first marble was green?
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Well we drew this scenario right over here
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If the first marble is green there are four possible outcomes
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not five anymore
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And two of them satisfy your criteria.
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So two of them satisfy your criteria.
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So the probability of the first marble being green and the second marble being green
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Is going to be the probability that your first is green
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So it's going to be three-fifths
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Times the probability that the second is green given the first was green.
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Now you have one less marble in the bag and we're assuming that the first pick was green
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So you only have two green marbles left.
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And so what does this give us for our total probability?
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Let's see. Three-fifths times two-fourths
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well two-fourths is the same thing as one half
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This is going to be equal to three-fifths times one half
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Which is equal to three tenths
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Or we could write that as zero point three zero
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Or we could say that there is a 30 percent chance
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of picking two green marbles when we are not replacing.
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So, given that, let me ask you the question again
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Would you want to play this game?
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Well if you played this game many, many, many, many times
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On average, you have a 30 percent chance
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of winning one dollar.
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And we haven't covered this yet,
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So your expected value is really going to be
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30 percent times one dollar
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This gives you a little bit of a preview
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Which is going to be thirty cents
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Thirty percent chance of winning one dollar
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You would expect, on average,
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if you were to play this many, many, many times
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that playing the game is going to give you 30 cents.
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Now, would you want to give someone
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35 cents to get on average 30 cents?
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No! You would not want to play this game.
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Now, one thing I will let you think about is
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Would you want to play this game
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If you could replace the green marble the first pick
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After the first pick if you could replace the green marble
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Would you want to play the game in that scenario?