Exercises 19 and 20 refer to Example 7.
1. Interpret the entry .79 in the fundamental matrix.
2. If the gambler begins with $2, what is the expected number of times that he will play before quitting?
Refer Example 7,
Consider a game of chance with the following characteristics: A person repeatedly bets $1 each play. If he wins, he receives $1. That is, he receives his bet of $1 plus winnings of $1. If he goes broke, he stops playing. Also, if he accumulates $3, he stops playing. On each play, the probability of winning is .4 and of losing .6. What is the probability of eventually accumulating $3 if he starts with $1? With $2?