A certain game the probability of winning

Reference no: EM131102204

A gambler believes that a strategy called "doubling up" is an effective way to gamble. The method requires the gambler to double the stake after each loss. Thus, if the initial bet is $1, after losing he will double the bet until he wins. After a win, he resorts back to a $1 bet. The result is that he will net $1 for every win. The problem however, is that he will eventually run out of money or bump up against the table limit. Suppose that for a certain game the probability of winning is .5 and that losing six in a row will result in bankrupting the gambler. Find the probability of losing six times in a row.

Reference no: EM131102204

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