Stopping Strategies and Gambler's Ruin
Department or Administrative Unit
Mathematics
Document Type
Article
Publication Date
2005
Journal
Mathematics Magazine
Abstract
In this paper we show how to answer the first questions (probabilities of success and ruin) using recurrence relations. Then we introduce the language and methods of random variables, showing how these probabilities can be used to solve the duration question. A key will be two identities due to Wald, for which we give elementary proofs at the end of the paper.
Recommended Citation
Harper, J. D., & Ross, K. A. (2005). Stopping Strategies and Gambler’s Ruin. Mathematics Magazine, 78(4), 255–268. https://doi.org/10.1080/0025570x.2005.11953340
Comments
This article was originally published in Mathematics Magazine. The full-text article from the publisher can be found here.
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