2 Boxes

You encounter two boxes: Box A contains a $1 bill and a $100 bill; Box B contains two $100 bills. You randomly draw a $100 bill from a randomly chosen box. Should you switch boxes before drawing again?

Answer

Bayesian Calculation: After drawing $100, the probability your initial box is B is

\[ P(B\mid100) =\frac{P(100\mid B)\,P(B)}{P(100\mid B)\,P(B)+P(100\mid A)\,P(A)} =\frac{1\cdot\tfrac12}{1\cdot\tfrac12 + \tfrac12\cdot\tfrac12} =\tfrac23, \]

so \(P(A\mid100)=\tfrac13\).

Hence, we do not switch.

Logical Explanation: After drawing $100, three equally likely scenarios arise:

\[ \begin{aligned} &(1)\ \text{You picked the first \$100 from Box B; the other in B is \$100 (no switch needed).}\\ &(2)\ \text{You picked the second \$100 from Box B; the other in B is \$100 (no switch needed).}\\ &(3)\ \text{You picked the only \$100 from Box A; the other in A is \$1 (you must switch).} \end{aligned} \]

In 2 of the 3 scenarios you would win by staying, and in 1 of the 3 you must switch to win, giving a no switching‐win probability of

\[ \frac{2}{3}. \]
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