Solution

ID: past-exam-of-the-probability-statistics-and-options-ii-course-of-the-university-of-oxford/2011/m/m5/a/v/solution

Let be the expected number of future children receiving stickers from a box containing , with . Conditioning on the first uniform remainder gives
Subtract the corresponding identity for after multiplying each by its denominator. This gives , so . Therefore , and
The recurrence counts the current positive recipient once and excludes all later children arriving after the box is empty.

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