From the New York Times "Numberplay" blog:
An entrepreneur has devised a gambling machine that chooses two independent random variables x and y that are uniformly and independently distributed between 0 and 100. He plans to tell any customer the value of x and to ask him whether y > x or x > y.
If the customer guesses correctly, he is given y dollars.
As a follow up to my simulation based approximate solution to the Gambling Machine Puzzle, here is the exact solution from mathematician Michael Lugo with a nice explaination.
