Gambler's Ruin - Expository Introduction with diagrams

The Gambler's Ruin problem explained as a conditional probability. For any given amount $h$ of current holdings, the conditional probability of reaching $N$ dollars before going broke is independent of how we acquired the $h$ dollars, so there is a unique probability $Pr{N|h}$ of reaching $N$ on the condition that we currently hold $h$ dollars. Boundary conditions are imposed. Plots are shown for various probability of winning one round. The case when that probability equals 1/2 is explained. A nice graphic for the Markov model is shown.

Identifier:
http://www.mathpages.com/home/kmath084/kmath084.htm
Rating:
Creator(s):
Kevin S. Brown
Cataloger:
Carolyn Cuff
Publisher:
http://www.mathpages.com/