3 ms·
Let's not forget that it's only the expected return, i.e., the return as the number of trials goes to infinity. But, you don't have infinite money to spend, so
by aposteriori 18y ago
Let's not forget that it's only the expected return, i.e., the return as the number of trials goes to infinity. But, you don't have infinite money to spend, so there's a good chance you'll go broke before you win (depending on the variance). Another way of looking at it, it's a random walk with a bottom barrier --- once it hits zero, you're out of the game.
- gravitycop 18y agoyou don't have infinite money to spend, so there's a good chance you'll go broke before you win I.e. risk-of-ruin: http://en.wikipedia.org/wiki/Ruin_theory http://en.wikipedia.org/wiki/Ruin_theory
- aposteriori 18y agoThanks, wasn't aware of this name.