Consider the guessing game where people are choosing numbers between 0 and 100. The aim is to come as close as possible to (1/2) of the average number chosen in the group. We will define "Level 0" thinking to imply that everyone chooses 100. Suppose everyone in the group applied Level 2 thinking; i.e. thought through 2 levels. Further suppose that choices could only be in whole numbers. What would you choose in this case to try and come as close as possible to (1/2) of the average?
A) 50.
B) 0.
C) 33.
D) 13.

Question

Quizplus · Accepted Answer

Level 2 thinking means considering what others would do if they were thinking one level ahead (Level 1). At Level 1, players would choose 50, aiming for half of 100. At Level 2, players anticipate this and choose half of 50, which is 25. However, since choices must be in whole numbers and aiming for half of the average, the closest whole number to half of 25 is 12.5, rounded to 13.

Consider the Guessing Game Where People Are Choosing Numbers Between