Question: (For this question, it is sufficient to write down the relevant formulas and clearly state how you will proceed. No need to calculate the numerical

(For this question, it is sufficient to write

(For this question, it is sufficient to write down the relevant formulas and clearly state how you will proceed. No need to calculate the numerical values.) Malcolm is in jail and he has $3 in his pocket. He will be able to get out of the jail on bail if he has 8 dollars. For this purpose, he convinces a guardian to make a series of bets with him. In each turn, Malcolm will win X dollars with probability 0.4 and will lose X dollars with probability 0.6 if he bets X dollars. Malcolm considers two strategies, which will be used throughout the game: *Strategy 1: Each time, betting 1 dollar. *Strategy 2: Each time, betting as much as possible but not more than necessary to bring his fortune up to 8 dollars a) Which strategy should Malcolm choose to maximize his chance to get out of jail? b) For these strategies, what are the expected number of turns until the game ends

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