This problem is inspired by a recent trip to Las Vegas.
Mr. G is an avid gambler. After studying blackjack for a while, he realizes that the casino has a minor edge in winning, even if he plays with an optimal strategy. Consequently, he devises the following scheme.
For simplicity, assume that each blackjack hand cost 1 dollar to play, no double-down or splitting allowed. Winning will always pays double the bet. His chance of winning every game is .48, and his chance of losing is .52.
Everyday, he would take a bankroll of 20 dollars down to the casino. He would play as long as it takes until he either loses all his bankroll, or reaches a total bankroll of 21 dollars. As soon as he reaches either state, he would pack up his belongings and retire to his room. So for instance, suppose one day he loses 3 hands in a roll, and then wins 4 hands afterward, he would have 21 dollars total, at which point he would retire for the day.
1) Does this strategy allow him to beat the house advantage, i.e. get a positive expected winning per day?
3) Suppose that he uses this strategy for 100 days straight, what is his expected winnings, or losses, at the end of the 100 days period? Assume that he has a big enough bank account in the beginning so that he can always start with 20 dollars each day, even in the worst case scenario.