Going Broke?
November 8th, 2010 at 12:25:54 PM
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Please help me! I posted in a few other forums, and nobody could answer this question!
A player deposited 100$ in his account.
He bets each time 10$
The chance of winning are 50%
He gets 1,85 times his money when winning.
On average, how many bets does he make before going broke?
Thank you
A player deposited 100$ in his account.
He bets each time 10$
The chance of winning are 50%
He gets 1,85 times his money when winning.
On average, how many bets does he make before going broke?
Thank you
November 8th, 2010 at 1:00:47 PM
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Simulation shows the average # of bets to be around 120-130 before you have less than $10 to bet.
This can be solved recursively, or using Markov chains.
This can be solved recursively, or using Markov chains.
Wisdom is the quality that keeps you out of situations where you would otherwise need it
November 8th, 2010 at 3:03:20 PM
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Makes sense. The EV per bet is -$0.75, so $100/$0.75 is 133...
"In my own case, when it seemed to me after a long illness that death was close at hand, I found no little solace in playing constantly at dice."
-- Girolamo Cardano, 1563
