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Jun 14, 2020
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Matthew Casertano and Fox Chyatte make a series of bets. In each bet, Matthew sets the stake (the amount he wins or loses) at half his current amount of money. He has an equal chance of winning and losing each bet. If he starts with $256, find the probability that after 8 bets, he will have at least $50.  

 

Since there's an equal chance of winning or losing, let's alternate them.

Let's start with the worse case scenario, that Matthew loses the first bet. 

 

Bet Number      Wager      Win/Lose     Remaining Balance 

 

                                                                      256.00

      1                128.00         L                        128.00 

      2                  64.00         W                       192.00  

      3                  96.00         L                          96.00 

      4                  48.00         W                       144.00  

      5                  72.00         L                          72.00 

      6                  36.00         W                       108,00  

      7                  54,00         L                          54,00 

      8                  27,00         W                         81.00 

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Jun 14, 2020

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