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Give an intuitive explanation

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Reference no: EM132340455

You are playing roulette, each time betting on "odd," which occurs with probability 18/38 and gives you even money back. You start with $10 and decide to play until you have either doubled your fortune or gone broke.

Compute the probability that you manage to double your fortune if in each round you bet $10, $5, $2, and $1 dollar, respectively.

After you have found the best strategy, give an intuitive explanation of why it is the best and why it is called "bold play."

Reference no: EM132340455

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