Penney's Game
The problem
You and a friend play a game. You each pick a sequence of three coin flips:
- You: Heads, Heads, Heads (HHH)
- Friend: Tails, Heads, Heads (THH)
A fair coin is flipped repeatedly. The first sequence to appear in order, as consecutive flips wins. Who wins more often?
Tempting (but wrong)
The instinct: on any random three consecutive flips, HHH and THH each occur with probability 1/8. Same odds, no edge. So it's a fair game.
This argument is right about individual three-flip windows but wrong about which sequence appears first in an ongoing flip stream. The two are not the same question.