Solution of a roulette-type ruin problem--a correction to: a rule of thumb (not only) for gamblers

Andrzej S. Kozek

Stochastic Processes and their Applications, vol. 100, issue 1-2, 301-311

Abstract: In the paper we derive a closed form formula for a probability of success in a roulette-type game. The player begins the game having j chips and plays one chip at a time. In each game, he either wins w chips with probability p or loses his chip with probability 1-p. The game terminates when the player loses all his fortune or when his capital reaches, or exceeds level C. The present solution rectifies the incorrect one, presented in Section 3 of Kozek (Stochastic Process Appl. 55 (I) (1995) 169).

Keywords: Gambling; Roulette; Ruin (search for similar items in EconPapers)
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