gambler's ruin

Related Overviews


'gambler's ruin' can also refer to...


More Like This

Show all results sharing this subject:

  • Probability and Statistics


Show Summary Details

Quick Reference

A classic random walk problem that can be solved using the theory of Markov processes. At each play a gambler is supposed to have probability p of winning one unit and probability q (=1−p) of losing one unit. The gambler starts with j units. Betting continues until either the gambler's fortune reaches N (in which case the gambler retires) or the gambler is ruined. If p=½ then the probability of ruin is 1−(j/N), and otherwise it is .

Subjects: Probability and Statistics.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.