Question
Suppose you go to a casino with exactly 63 dollars. You play a game where the probability of winning is 1/2. You have the following
Suppose you go to a casino with exactly 63 dollars. You play a game where
the probability of winning is 1/2. You have the following strategy:
First, you bet 1 dollar if you win, you leave with 64 dollars.
If you lose you bet 2 dollars. If you win you leave.
If you lose you bet 4 dollars. You then continue this pattern, if you win you leave, if you
lose you bet twice your last bet, until you have no more money.
Let Y equal the amount of money you take home. Compute pY (y) and E[Y ]. Would you
play this game everyday?
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Transportation A Global Supply Chain Perspective
Authors: John J. Coyle, Robert A. Novak, Brian Gibson, Edward J. Bard
8th edition
9781305445352, 1133592961, 130544535X, 978-1133592969
