Risk of ruin

Risk of ruin

Posers and Puzzles

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u
The So Fist

Voice of Reason

Joined
28 Mar 06
Moves
9908
22 Nov 06

Originally posted by mtthw
As I said, let B = 1. I took one specific case and showed the answer couldn't be 50%. Therefore it can't be 50% in all cases.
PW is 0.5 not 0.1

m

Joined
07 Sep 05
Moves
35068
22 Nov 06

Originally posted by PBE6
This is a little bit complicated, because not all arrangements are valid (you can't have more than B-1 losses in a row before getting a few wins)
You might be able to use a reflection principle to work out A(m). The number of paths from A to B that hit zero is equal to the number of paths from A to -B.

m

Joined
07 Sep 05
Moves
35068
22 Nov 06
1 edit

Originally posted by uzless
PW is 0.5 not 0.1
Pw was unspecified in the question. If Pw is 0.5 then you will hit zero eventually (see the formula I posted for the result).

u
The So Fist

Voice of Reason

Joined
28 Mar 06
Moves
9908
22 Nov 06

Originally posted by mtthw
Pw was unspecified in the question. If Pw is 0.5 then you will hit zero eventually (see the formula I posted for the result).
according to your website, you've posted the wrong formula for pw = 0.5

m

Joined
07 Sep 05
Moves
35068
22 Nov 06

Originally posted by uzless
according to your website, you've posted the wrong formula for pw = 0.5
That's the formula for Pw > 0.5, although you'll notice it equals 1 for Pw = 0.5, so no worries.