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

Count the number of times the letter "F" appears in the following paragraph:
FAY FRIED FIFTY POUNDS OF
SALTED FISH AND THREE POUNDS
OF DRY FENNEL FOR DINNER FOR
FORTY MEMBERS OF HER FATHER'S FAMILY.

It appears 14 times. Make sure to count the "F"s in the word "OF", which people commonly miss.

Consider the following explanation for why 1=2:
1. Start out Let y = x
2. Multiply through by x xy = x2
3. Subtract y2 from each side xy - y2 = x2 - y2
4. Factor each side y(x-y) = (x+y)(x-y)
5. Divide both sides by (x-y) y = x+y
6. Divide both sides by y y/y = x/y + y/y
7. And so... 1 = x/y + 1
8. Since x=y, x/y = 1 1 = 1 + 1
8. And so... 1 = 2
How is this possible?

Step 5 is invalid, because we are dividing by (x-y), and since x=y, we are thus dividing by 0. This is an invalid mathematical operation (division by 0), and so by not followinng basic mathematical rules, we are able to get strange results like these.

At a dinner party, many of the guests exchange greetings by shaking hands with each other while they wait for the host to finish cooking.
After all this handshaking, the host, who didn't take part in or see any of the handshaking, gets everybody's attention and says: "I know for a fact that at least two people at this party shook the same number of other people's hands."
How could the host know this? Note that nobody shakes his or her own hand.

Assume there are N people at the party.
Note that the least number of people that someone could shake hands with is 0, and the most someone could shake hands with is N-1 (which would mean that they shook hands with every other person).
Now, if everyone at the party really were to have shaken hands with a different number of people, then that means somone must have shaken hands with 0 people, someone must have shaken hands with 1 person, and so on, all the way up to someone who must have shaken hands with N-1 people. This is the only possible scenario, since there are N people at the party and N different numbers of possible people to shake hands with (all the numbers between 0 and N-1 inclusive).
But this situation isn't possible, because there can't be both a person who shook hands with 0 people (call him Person 0) and a person who shook hands with N-1 people (call him Person N-1). This is because Person 0 shook hands with nobody (and thus didn't shake hands with Person N-1), but Person N-1 shook hands with everybody (and thus did shake hands with Person 0). This is clearly a contradiction, and thus two of the people at the party must have shaken hands with the same number of people.
Pretend there were only 2 guests at the party. Then try 3, and 4, and so on. This should help you think about the problem.
Search: Pigeonhole principle

Marty and Jill want to copy three 60 minute tapes. They have two tape recorders that will dub the tapes for them, so they can do two at a time. It takes 30 minutes for each side to complete; therefore in one hour two tapes will be done, and in another hour the third will be done. Jill says all three tapes can be made in 90 minutes. How?

Jill will rotate the three tapes. Let's call them tapes 1,2, and 3 with sides A and B. In the first 30 minutes they will tape 1A and 2A, in the second 3 minutes they will tape 1B and 3A (Tape 1 is now done). Finally, in the last 30 minutes, they will tape 2B and 3B.

How much dirt would be in a hole 6 feet deep and 6 feet wide that has been dug with a square edged shovel?

None.
No matter how big a hole is, it's still a hole: the absence of dirt.
And those of you who said 36 cubic feet are wrong for another reason, too.
You would have needed the length measurement too.
So you don't even know how much air is in the hole.

In olden days you are a clever thief charged with treason against the king and sentenced to death.
But the king decides to be a little lenient and lets you choose your own way to die.
What way should you choose?
Remember, you're clever!