Alpha Geek

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Category > Statistics Posted 31 May 2017 My Price 4.00

A gambler repeatedly plays a game where in each round

A gambler repeatedly plays a game where in each round, he wins a dollar with probability 1/3 and loses a dollar with probability 2/3. His strategy is “quit when he is ahead by $2,” though some suspect he is a gambling addict anyway. Suppose that he starts with a million dollars. Show that the probability that he’ll ever be ahead by $2 is less than ¼.

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Alpha Geek
(8)
Status NEW Posted 31 May 2017 06:05 AM My Price 4.00

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