Calculate the transition probabilities, Basic Statistics

Assignment Help:

Consider a person who repeatedly plays a game of chance (gambling)with two results possible (win or lose) with a probability p = 0, 3 to win. If the person has bet x amount and if he wins, he take back his x dollars and he receives another x dollars. Otherwise, heloses his bet. Suppose that each game, the person chooses to bet the amount as follows: if he has less than $ 3 in hand, he put all his money. Otherwise, since his goal is to have $ 5, he put the difference between $ 5 and what it was in his pocket. The continues to play until he found with 0 or $ 5 in his pocket, then stop playing. Let Xnbe the pocket amount (in whole dollars) only after the game, and assume that X0 the initial money of the player, is an integer uniformly distributed between 1 and 4.

(A) Construct the matrix of transition probabilities of the Markov chain {Xn, n = 0, 1, 2,. . .}.

(B) What is the probability that the game ends on the first try?

(C) If the game ends in the first test, what is the probability that the player is ruined?

(D) If the game continues after the first test, then what is the expected wealth of the player?

(E) What is the probability that the player has $ 3 or more after playing twice?

 


Related Discussions:- Calculate the transition probabilities

statistic assignment, I have statistic assignment can do it at 2.30 H, bec...

I have statistic assignment can do it at 2.30 H, because I don''t have time

Tax, _______ 1. F''s share of income from various sources is as follows for...

_______ 1. F''s share of income from various sources is as follows for the current year: Source F''s Share of Entity''s Net Income F''s Share of Distributions ABC Partnership after

Question from inventory, CASE STUDY 1 3 MARKS An audit of the...

CASE STUDY 1 3 MARKS An audit of the accounting records of Loch Ness Ltd. for the year ending 30 June 2012 discovered that the ending inventory balance

What is inference, Q. What is Inference? Ans. Inference is the pro...

Q. What is Inference? Ans. Inference is the process of deriving conclusions based on facts or premises. We often make inferences based on the results of statistical studi

perform hypothesis test and find the minimum sample size, Questions ...

Questions In one hybridization experiment 8070 offspring seeds were obtained, and 23.54% of them had green flowers.  The others had white flowers.  Perform a hypothesis test

Major advantages of the single entry system, What are the major advantages ...

What are the major advantages of the Single Entry System? Ans. A Single Entry system is considered to be the most simplest method to record the financial transaction, only cash bo

Sequence networks , A group of identical synchronous motors is connected th...

A group of identical synchronous motors is connected through a transformer to a 4.16-kV bus at a remote location from the generating plants of a power system. The motors are rated

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd