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Bunuel
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Larry can win in following scenarios: W, LLW, LLLLW, so on.

GP series of Probabilities:
1/2, 1/8, 1/32 and so on

Final Probability= Sum of all Probabilities in above series

Sum= a1(1-r^n) / (1-r)

Common ratio r= (1/8)/(1/2)= 1/4
(i.e ratio of two adjacent terms with a2 as numerator and a1 as denominator)

No of terms n= infinite
So, r^n= 1/2^infinity tends to 0 as 1/infinity= 0

So, Sum= a1(1-0) / 1-0.25
= 0.5/0.75 = 2/3

Hence, Ans C
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­How can Larry win?

W - Win - 1/2 probability
L - Loss - 1/2 probability

W OR LLW OR LLLLW OR LLLLLLW OR ... so on till infinity.

P(Larry wins) = 1/2 + (1/2 x 1/2 x 1/2) + (1/2 x 1/21/2 x 1/2 x 1/2) + so on till infinity.

P(Larry wins) = 1/2 + 1/2^3 + 1/2^5 + 1/2^7 + so on till infinity.

This is an infinite GP with first term a = 1/2 and common ratio r = 1/2^2 = 1/4 (r <1). 

Sum = a/1-r = (1/2) / (1-1/4) = 2/3. Choice C.

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Call the infinite series S, which begins with a win for Larry of 1/2 probability.

After adding a win with a probability of 1/2 for the initial toss there follows a loss for Larry and a loss for Julius, each probability of 1/2, multiplied by the same initial infinite series that began with Larry's winning, correct ?

So:

S = 1/2 + (1/2)(1/2)S and

3S/4 = 1/2 and

S = 4/6 = 2/3

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