These derivations go like this.. First you set the problem up in words.. then you translate those into math symbols, work the math to get an answer and then translate it back into words. So here goes..
(n)
E = N . \ 1 = N . (2^n - 1) = 2N . (2^n - 1)
/ 2^(m-1) 2^(n-1) 2^n
m=1
Now for n large enough (number of correct guesses ~ 8 will do)
(2^n - 1) approx ~= 2^n leaving E ~= 2N
Now for n = 8 (RD's example where he noted the audience was about 100)
E (from actual calculation above) = N . (255/128)
From simple probability.. n correct guesses at random will occur once every 2^n tosses if averaged over a very large number of tosses.
Hence the expected value of E is 2^8 = 256 so putting this value in above we get..
N . (255/128) = 256 Therefore N = 128.502 or 129 (whole people)
This corresponds well with Richard Dawkins estimate at the time. Now look at this table..
n N 2^n = E
8 129 256
10 513 1024
15 16385 32768
20 524289 1048576
So N (rounded up) ~= E/2.. The audience number N determines E (the number of events) which (by my proof) = the required number to pay the entropy debt for the low entropy result (a number of heads guessed in a row)..
The simulation verifies how the entropy debt is paid for by the process.. QED
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