Part 3/8:
This discrepancy highlights a phenomenon known as a non-ergodic system, where the collective average diverges vastly from individual experiences. While some players make significant gains, many suffer substantial losses, illustrating the delicate balance between luck and wealth management.
Exploring the Paradox
To visualize why the median outcome is so low, consider the sequences of coin flips available. With each combination of heads and tails, the outcomes begin to diverge. For instance, flipping heads and then tails results in a significant reduction of wealth, ultimately affecting the balance after sequential flips.