The Blue Gems

There are hundred red gems and hundred blue gems. The blue gems are priceless while the red gems equal wastage. You have two sacks one labeled Heads and the other Tails. You have to distribute the gems as you want in the two sacks. Then a coin will be flipped and you will be asked to pick up a gem randomly from the corresponding sacks.

How will you distribute the gems between the sacks so that the odds of picking a Blue gem are maximum?




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Amazing Facts

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In 2007, a puzzle was released and $2 million prizes were offered for the first complete solution. The competition ended at noon on 31 December 2010, with no solution being found. Wiki