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EGarrett comments on Open Thread for February 11 - 17 - Less Wrong Discussion
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I participated in an economics experiment a few days ago, and one of the tasks was as follows. Choose one of the following gambles where each outcome has 50% probability Option 1: $4 definitely Option 2: $6 or $3 Option 3: $8 or $2 Option 4: $10 or $1 Option 5: $12 or $0
I choose option 5 as it has the highest expected value. Asymptotically this is the best option but for a single trial, is it still the best option?
As a poker player, the idea we always batted back and forth was that Expected Value doesn't change over shorter sample sizes, including a single trial. However you may have a risk of ruin or some external factor (like if you're poor and given the option of being handed $1,000,000 or flipping a coin to win $2,000,001).
Barring that, if you're only interested in maximizing your result, you should follow EV. Even in a single trial.