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Probability of flipping and winning

Best Answer phil1882, 01 June 2013 - 09:21 PM

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Posted 01 June 2013 - 03:55 AM

Fearless Frank decided to play a fair coin-flip game with probability 1/2 of winning each
bet, and risked 1/m of his fortune (originally A dollars, m>1) at every flip. After 2n games,
Frank has won n games and lost n. Choose and explain the correct answer from this list:
a) Frank has broken even; he still has his A dollars
b) Frank is predictably ahead by a certain amount
c) Frank is predictably behind by a certain amount (in case b or c give the exact formula in terms of m and n)
d) Frank is now ahead, behind, or even, depending on the order in which the wins and losses occurred
e) He is ahead, behind, or even, depending on m and n

Edited by BMAD, 01 June 2013 - 03:56 AM.

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#2 phil1882


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Posted 01 June 2013 - 09:21 PM   Best Answer

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