Consider the following simple model of gambling in the presence of bad odds. At the beginning,...

 

Transcribed Image Text:

Consider the following simple model of gambling in the presence of bad odds. At the beginning, your net profit is O. You play for a sequence of n rounds; and in each round, your net profit increases by 1 with probability 1/3, and decreases by 1 with probability 2/3 Show that the expected number of steps in which your net profit is positive can be upper-bounded by an absolute constant, independent of the value of n. Consider the following simple model of gambling in the presence of bad odds. At the beginning, your net profit is O. You play for a sequence of n rounds; and in each round, your net profit increases by 1 with probability 1/3, and decreases by 1 with probability 2/3 Show that the expected number of steps in which your net profit is positive can be upper-bounded by an absolute constant, independent of the value of n.

Answer rating: 100% (QA)

To upperbound the expected number of steps in which your net profit is positive we can consider the ... View the full answer