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Mathematics, 06.07.2019 12:50 bigmac34
At each turn, a gambler bets a certain amount, wins it with probability p and loses it with probability q = 1−p. when he begins playing, he has $k for some integer k > 0 and his goal is to reach $n for some integer n > k, after which he stops playing. he also stops playing if he loses all his money. the gambler has the option of betting $1 at each turn and the option of betting $0.5 at each turn. show that betting $0.5 is a better option if p > 1/2 and that betting $1 is a better option if p < 1/2.
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At each turn, a gambler bets a certain amount, wins it with probability p and loses it with probabil...
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