Category: Difference Equations

Gambler’s Ruin

byadmin February 8, 2020 Difference Equations Mathematics Python
Suppose I start gambling with $13 and with the goal of walking away with double my money. If I have 55% probability of winning $1 and 45% probability of losing $1 at each gamble, what's the probability that I will lose all my money before I double it? This is the Gambler's Ruin problem.

This article has 4 sections:

  1. Introduction: Introduction to the gambler's ruin problem
  2. Theory: The solution to the Gambler's Ruin problem
  3. Methodology: How the simulation will be carried out
  4. Pseudocode: Summary of the Python Code