Find probability that marys total worth reaches high value

Reference no: EM13153149

Find the probability that Marys total worth reaches $3000 at some point. (We assume here that Mary has to quit playing if she goes bankrupt so this is a gamblers ruin problem.) (c) Now suppose Mary has a rich aunt who constantly resupplies her with $1500 whenever she happens to go bankrupt. Now what is the probability that her total worth reaches $3000 at some point? (d) Suppose there is no rich aunt but we enable Mary to play indenitely by letting her go arbitrarily deep into debt. Now what is the probability that her total worth manages to reach $3000? Why is this answer dierent from your answer in (c)?

Reference no: EM13153149

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