Question

Alfraed and Broetschen have bet $100 on the winner of the 2055 Stanley cup which goes to the first team to win 4 games out of seven matches. The Final this year is between the Waterloo Weirdos and the Kitchener Klutzes and so far Kitchener is ahead 2 to one in the best of 7 final. Alfraed, who bravely bet on the Kitchener Klutzes, wants out of the bet, since he needs money immediately to cover a debt to an angry biker in Accounting a. Assuming the teams are evenly matched, what is the probability that Alfraed would win the bet (S 100) if he continued? b. What would be a fair division of the stakes if the bet is terminated?

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