Answer to Puzzle #14 - 52 Cards Win a Dollar 14. You have 52 playing cards (26 red, 26 black). You draw cards one by one. A red card pays you a dollar. A black one fines you a dollar. You can stop any time you want. Cards are not returned to the deck after being drawn. What is the optimal stopping rule in terms of maximizing expected payoff? Also, what is the expected payoff following this optimal rule? The solution to this problem is, in my opinion the most difficult to understand of all the puzzles.
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