Hi all,
I'm using Excel 2013, I'm trying to construct a spreadsheet model for this question using probability/statistical functions in excel, to simulate this betting strategy.
In the gambling game of heads or tails, a coin is tossed. You win if it is heads and lose if it is tails. A win means you keep the bet plus an additional bet amount given to you by the banker, and a loss means the banker takes your bet. In general, if the probability of winning is p, then the total returned amount when you win is the bet amount divided by p. In this case, p is 1⁄2 and therefore the total return (inclusive of the bet) to the winner is two times the bet. After a few rounds, your net balance or win is the amount you currently have minus the amount you initially have before the game started.
a. A simple strategy is to bet the same amount each time until money runs out or completing round 40, whichever comes first. Note the last bet, depending on what is available, may not be equal to the first bet amount. Using this strategy, with an initial fund of $1,000 and $10 bet size, what are the average and standard deviation of the last net balance? Do the same for $50 bets and $100 bets."
I tried using the CRITBINOM function but I did not managed to include the bet size of $10.
I'm using Excel 2013, I'm trying to construct a spreadsheet model for this question using probability/statistical functions in excel, to simulate this betting strategy.
In the gambling game of heads or tails, a coin is tossed. You win if it is heads and lose if it is tails. A win means you keep the bet plus an additional bet amount given to you by the banker, and a loss means the banker takes your bet. In general, if the probability of winning is p, then the total returned amount when you win is the bet amount divided by p. In this case, p is 1⁄2 and therefore the total return (inclusive of the bet) to the winner is two times the bet. After a few rounds, your net balance or win is the amount you currently have minus the amount you initially have before the game started.
a. A simple strategy is to bet the same amount each time until money runs out or completing round 40, whichever comes first. Note the last bet, depending on what is available, may not be equal to the first bet amount. Using this strategy, with an initial fund of $1,000 and $10 bet size, what are the average and standard deviation of the last net balance? Do the same for $50 bets and $100 bets."
I tried using the CRITBINOM function but I did not managed to include the bet size of $10.
