Am I correct in saying that removing incorrect guesses improves the odds of each subsequent guess? For example, Our first guess has odds of 999 to 1, while our second guess has odds of 998 to 1?
I thought that would be relevant to the answer. But it sounds like you're saying it's not. (I'm confident you're right, it's just not intuitive to me)
What improves each time is the CONDITIONAL probability for each guess, which is what you are citing. What you need to find the expected value is the probability that your nth guess will be the correct one, and that (the probability as judged from the start, not after n-1 guesses) is the same for each.
You're right, it's not intuitive, and in fact is counter-intuitive for most people. That's why you have to apply what you're learning, not your untrained intuition!
Here's what I said before:
The probability that the second guess is correct, GIVEN THAT the first was incorrect, is 1/999 (corresponding to odds of 1:998). But the probability (a priori) that you will be correct on the second guess is P(correct on second | wrong on first) * P(wrong on first) = 1/999 * 999/1000 = 1/1000. The same reasoning shows that you are equally likely to be correct on any one guess. This makes sense, because after the fact we could just list all your guesses (including what you would have guessed if you hadn't already won), and each of those is equally likely to have been correct.)
Have you carefully thought through that?
The average of the numbers 1 through 1000 is 500. Are you saying that the answer is 500? (Intuitively, it feels like it should be a more complicated equation than that.)
Almost, but not quite.
Let's take a small case. Suppose there are three choices, A, B, and C. The probability that the correct one is A is 1/3, and likewise for B and for C. Say I guess in the order B, A, C. The probability that my first guess, B, is correct is 1/3. So is the probability for my second guess, and my third guess. (And the sum of these is 1, as it has to be, but wouldn't be if the probabilities increased as you think!)
So the expected value of X, the number of guesses I need, is 1*P(1) + 2*P(2) + 3*P(3) = (1+2+3)*1/3 = 6/3 = 2. And that is the average of 1, 2, and 3. It's also the average of 1 and 3, the first and last numbers. (Observe that this is not half of 3!)
Now, what is the average of 1 and 1000? (Again, both you and I first go for a slightly wrong number -- intuition is not always right, even for me!)