Purchase Solution

Combined Initial Capital

Not what you're looking for?

Ask Custom Question

In a classical ruin problem with two gamblers, the initial capital of one of the gamblers, Alice, is $90 and the combined initial capital (CIC) is $200. In each trial of the game, an unbiased coin is tossed - Alice wins when the coin shows heads.

a) What is the expected duration of the game?
b) Given the same CIC, how much more money should Alice have ititially so as to maximize the expected duration of the game?

Purchase this Solution

Solution Summary

This solution to this problem explains the probability of Alice winning a dollar per game. It also answers the question posted in detail.

Solution Preview

Since the coin is unbiased, the probability of Alice winning (or losing) a dollar in a trial is 1/2. The numerical value of ...

Purchase this Solution


Free BrainMass Quizzes
Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.