- +44 141 628 6080
- [email protected]

Applying the optional stopping theorem

Question:

Starting at value 0, the fortune of an investor increases per week by $ 200 with probability 3/8, remains constant with probability 3/8 and decreases by $ 200 with probability 2/8. The weekly increments of the investor's fortune are assumed to be independent. The investor stops the 'game' as soon as he has made a total fortune of $ 2000 or a loss of $1000, whichever occurs first. By using suitable martingales and applying the optional stopping theorem, determine

(1) the probability P2000 that the investor finishes the 'game' with a profit of $2000,

(2) the probability P- 1000 That the investor finishes the 'game' with a loss of $1000

(3) the mean duration of the 'game'

Expected delivery within 24 Hours

1940737

Questions

Asked

3,689

Active Tutors

1435398

Questions

Answered

**
Start Excelling in your courses, Ask a tutor for help and get answers for your problems !! **

Â©TutorsGlobe All rights reserved 2022-2023.

## Q : Determine the point and the stationary availability

Determine the point and the stationary availability of the system on condition