For anyone that might have gotten stuck:
Solution
We unravel this confusion by recognizing that there is no reason to add $2 to $27. It should be subtracted.
The $3 amount that has been returned to the guests is a reduction in the amount that the guests paid, so it should be subtracted from the total. The bellhop returned $3 ($1 each), making their total payment $27 (mathematically, $30 - $3). Note that the $3 is subtracted from the total. If the bellhop then changed his mind and returned the additional $2 to the guests, it would also be subtracted from the total. The mistake is made in trying to add this $2 instead of subtracting it. Simple math demonstrates what readers intuitively sense, that there is no missing money. The sum of their payments is $25 in the till, $2 in the bellhop's pocket (totaling $27), plus the $3 in change that the guests now have, which brings the total up to $30.
The incorrect solution is: ($10 - $1) x 3 + $2 = $29. This equation is not meaningful: the number 29 is not significant to the problem, i.e. there is no "missing $1".
The correct solution is: ($10 - $1) x 3 - $2 = $25. In this case the solution is the bill amount, which is also the amount of money left in the till.
In other words, $27 is the amount that the guests have paid. Of that $27, $25 went into the till and $2 went to the bellhop. The other $3 is returned to the guests. To restate the original problem: "$25 is in the cash register, the bellhop has $2, and the guests got $3 back. If the guests originally handed over $30, does this add up?" 25 + 2 + 3 = 30; yes, it does.
This problem provides a means to understand how misdirection, and irrelevant facts and questions, can foil clear analysis. Additionally, the tools used to resolve this paradox are used in the analysis of a wide range of financial and scientific areas.
