This post presents a stochastic problem, with application to financial theory taken from this magazine article. Some say the problem goes back to Warren Buffett. Thanks to my colleague Norman Markgraf, who pointed it out to me. Assume there are two coins. One is fair, one is loaded. The loaded coin has a bias of 60-40. Now, the question is: How many coin flips do you need to be “sure enough” (say, 95%) that you found the loaded …