Mathematical Conundrum or Not? Number Six It should be noted the a so called "switching strategy" can only work if it has the time to learn the distribution. It only works because in the long run it can gather enough information to approximate the distribution, but at the start its predictions will be very unreliable.
Consider
@Michael's simulation he posted:
Here
Now he ran it for 10,000 times, that means it was able to gather a lot of information on the distribution but what if we try it with 5 times, what is our expected gain then? I will use his code but change the number of times to run it.
Let's give go at 5 iterations :
[1] "Gain: -0.112966601178782"
At 10 iterations:
[1] "Gain: 0.190537084398977"
At 20 iterations:
[1] "Gain: 0.468846391116595"
At 30 iterations:
[1] "Gain: 0.331561140647656"
At 50 iterations:
[1] "Gain: 0.146130465279402"
At 100 iterations:
[1] "Gain: 0.246130667031913"
Finally at 100 iterations do we get Micheal's predicted expected returns. A "switching strategy" depends on repeat occurrences to work, as it has to gather that information. So just how many envelopes do you think you'll get to open?