A martingale betting strategy works as follows. We begin with a certain amount of money and repeatedly play a game in which we have a 40% chance of winning any bet. In the first game, we bet $1. From then on, every time we win a bet, we bet $1 the next time.

Each time we lose, we double our previous bet. Currently we have $63. Assume we have unlimited credit, so that we can bet more money than we have. Use simulation to estimate the profit we will have earned after playing the game 50 times.

Skill-Extending Problems