In the history of statistics, economy and decision theory, the St. Petersburg paradox plays a key role. This lottery problem goes back a full three centuries to the mathematician Nicolas Bernoulli who first formulated the problem in 1713. Twenty five years later, in 1738, his nephew Daniel Bernoulli presented the problem to the Imperial Academy of Sciences in St. Petersburg. That presentation not only gave the paradox its name, it also created a lot of commotion amongst mathematicians.
 
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