Frank and some of the boys were exchanging old war stories. James offered one about how his grandfather (Captain Smith) led a battalion against a German division during World War I. Through brilliant maneuvers he defeated them and captured valuable territory. Within a few months after the battle he was presented with a sword bearing the inscription: "To Captain Smith for Bravery, Daring and Leadership, World War One, from the Men of Battalion 8." Frank looked at James and said, "You really don't expect anyone to believe that yarn, do you?"
What is wrong with the story?

It wasn't called World War One until much later. It was called the Great War at first, because they did not know during that war and immediately afterward that there would be a second World War (WW II).

You have twelve balls, identical in every way except that one of them weighs slightly less or more than the balls.
You have a balance scale, and are allowed to do 3 weighings to determine which ball has the different weight, and whether the ball weighs more or less than the other balls.
What process would you use to weigh the balls in order to figure out which ball weighs a different amount, and whether it weighs more or less than the other balls?

Take eight balls, and put four on one side of the scale, and four on the other.
If the scale is balanced, that means the odd ball out is in the other 4 balls.
Let's call these 4 balls O1, O2, O3, and O4.
Take O1, O2, and O3 and put them on one side of the scale, and take 3 balls from the 8 "normal" balls that you originally weighed, and put them on the other side of the scale.
If the O1, O2, and O3 balls are heavier, that means the odd ball out is among these, and is heavier. Weigh O1 and O2 against each other. If one of them is heavier than the other, this is the odd ball out, and it is heavier. Otherwise, O3 is the odd ball out, and it is heavier.
If the O1, O2, and O3 balls are lighter, that means the odd ball out is among these, and is lighter. Weigh O1 and O2 against each other. If one of them is lighter than the other, this is the odd ball out, and it is lighter. Otherwise, O3 is the odd ball out, and it is lighter.
If these two sets of 3 balls weigh the same amount, then O4 is the odd ball out. Weight it against one of the "normal" balls from the first weighing. If O4 is heavier, then it is heavier, if it's lighter, then it's lighter.
If the scale isn't balanced, then the odd ball out is among these 8 balls.
Let's call the four balls on the side of the scale that was heavier H1, H2, H3, and H4 ("H" for "maybe heavier").
Let's call the four balls on the side of the scale that was lighter L1, L2, L3, and L4 ("L" for "maybe lighter").
Let's also call each ball from the 4 in the original weighing that we know aren't the odd balls out "Normal" balls.
So now weigh [H1, H2, L1] against [H3, L2, Normal].
-If the [H1, H2, L1] side is heavier (and thus the [H3, L2, Normal] side is lighter), then this means that either H1 or H2 is the odd ball out and is heavier, or L2 is the odd ball out and is lighter.
-So measure [H1, L2] against 2 of the "Normal" balls.
-If [H1, L2] are heavier, then H1 is the odd ball out, and is heavier.
-If [H1, L2] are lighter, then L2 is the odd ball out, and is lighter.
-If the scale is balanced, then H2 is the odd ball out, and is heavier.
-If the [H1, H2, L1] side is lighter (and thus the [H3, L2, Normal] side is heavier), then this means that either L1 is the odd ball out, and is lighter, or H3 is the odd ball out, and is heavier.
-So measure L1 and H3 against two "normal" balls.
-If the [L1, H3] side is lighter, then L1 is the odd ball out, and is lighter.
-Otherwise, if the [L1, H3] side is heavier, then H3 is the odd ball out, and is heavier.
If the [H1, H2, L1] side and the [H3, L2, Normal] side weigh the same, then we know that either H4 is the odd ball out, and is heavier, or one of L3 or L4 is the odd ball out, and is lighter.
So weight [H4, L3] against two of the "Normal" balls.
If the [H4, L3] side is heavier, then H4 is the odd ball out, and is heavier.
If the [H4, L3] side is lighter, then L3 is the odd ball out, and is lighter.
If the [H4, L3] side weighs the same as the [Normal, Normal] side, then L4 is the odd ball out, and is lighter.

Mr. Black, Mr. Gray, and Mr. White are fighting in a truel. They each get a gun and take turns shooting at each other until only one person is left. Mr. Black, who hits his shot 1/3 of the time, gets to shoot first. Mr. Gray, who hits his shot 2/3 of the time, gets to shoot next, assuming he is still alive. Mr. White, who hits his shot all the time, shoots next, assuming he is also alive. The cycle repeats. All three competitors know one another's shooting odds. If you are Mr. Black, where should you shoot first for the highest chance of survival?

He should shoot at the ground. If Mr. Black shoots the ground, it is Mr. Gray's turn. Mr. Gray would rather shoot at Mr. White than Mr. Black, because he is better. If Mr. Gray kills Mr. White, it is just Mr. Black and Mr. Gray left, giving Mr. Black a fair chance of winning. If Mr. Gray does not kill Mr. White, it is Mr. White's turn. He would rather shoot at Mr. Gray and will definitely kill him. Even though it is now Mr. Black against Mr. White, Mr. Black has a better chance of winning than before.

You have 25 horses. When they race, each horse runs at a different, constant pace. A horse will always run at the same pace no matter how many times it races.
You want to figure out which are your 3 fastest horses. You are allowed to race at most 5 horses against each other at a time. You don't have a stopwatch so all you can learn from each race is which order the horses finish in.
What is the least number of races you can conduct to figure out which 3 horses are fastest?

You need to conduct 7 races.
First, separate the horses into 5 groups of 5 horses each, and race the horses in each of these groups. Let's call these groups A, B, C, D and E, and within each group let's label them in the order they finished. So for example, in group A, A1 finished 1st, A2 finished 2nd, A3 finished 3rd, and so on.
We can rule out the bottom two finishers in each race (A4 and A5, B4 and B5, C4 and C5, D4 and D5, and E4 and E5), since we know of at least 3 horses that are faster than them (specifically, the horses that beat them in their respective races).
This table shows our remaining horses:
A1 B1 C1 D1 E1
A2 B2 C2 D2 E2
A3 B3 C3 D3 E3
For our 6th race, let's race the top finishers in each group: A1, B1, C1, D1 and E1. Let's assume that the order of finishers is: A1, B1, C1, D1, E1 (so A1 finished first, E1 finished last).
We now know that horse D1 cannot be in the top 3, because it is slower than C1, B1 and A1 (it lost to them in the 6th race). Thus, D2 and D3 can also not be in the to 3 (since they are slower than D1).
Similarly, E1, E2 and E3 cannot be in the top 3 because they are all slower than D1 (which we already know isn't in the top 3).
Let's look at our updated table, having removed these horses that can't be in the top 3:
A1 B1 C1
A2 B2 C2
A3 B3 C3
We can actually rule out a few more horses. C2 and C3 cannot be in the top 3 because they are both slower than C1 (and thus are also slower than B1 and A1). And B3 also can't be in the top 3 because it is slower than B2 and B1 (and thus is also slower than A1). So let's further update our table:
A1 B1 C1
A2 B2
A3
We actually already know that A1 is our fastest horse (since it directly or indirectly beat all the remaining horses). So now we just need to find the other two fastest horses out of A2, A3, B1, B2 and C1. So for our 7th race, we simply race these 5 horses, and the top two finishers, plus A1, are our 3 fastest horses.

Justin Case and Auntie Bellum are fellow con artists who deliver coded messages to each other to communicate. Recently Auntie Bellum was put in jail for stealing a rare and expensive diamond. Only a few days after this, Justin Case sent her a friendly letter asking her how she was. On the inside of the envelope of the letter, he hid a code. Yesterday, Auntie Bellum escaped and left the envelope and the letter inside the jail cell. The police did some research and found the code on the inside of the envelope, but they haven't been able to crack it. Could you help the police find out what the message is?
This is the code:
llwatchawtfeclocklnisksundialcirbetimersool

The message was "loose bricks in left wall." The message was put backward with words related to time in between. This is how the message looks when separated:
ll watch awtfe clock Inisk sundial cirbe timer sool
If you take out watch, clock, sundial, and timer, this is what is left:
llawtfelniskcirbesool
Look at this backwards and this is what you have:
loose bricks in left wall
Auntie Bellum took out the bricks and escaped in the night. Then, she put the bricks back where they were.

Even though the odds are always in favor of the gambling house, why does the establishment insist on a house limit on stakes?

Every casino in the world would go bankrupt without a house limit on stakes. Without it, gamblers would keep doubling their stakes until they won. No matter how bad a losing streak they were on, they would eventually win. For more information, search: Martingale