Regarding the gambler's ruin. Suppose the odds are against the gambler, as in probability of heads being
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Regarding the gambler's ruin. Suppose the odds are against the gambler, as in probability of heads being 45%. The gambler continues to make bets until 1 of 2 events occur: she has 100. We are interested in how small changes in capital affect the final policy.
1) Suppose the gambler has 50 dollars. What bet does she make?
2) Suppose the gambler has 51 dollars. What bet does she make?
3) Is the bet proportional? Why or why not?
4) Are there points where the gambler behaves very differently?
Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
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