Question

Using a doubling strategy, what are the eventual chances of winning? How much?What are the eventual chances of losing and going bankrupt? Explain.

Answer 1

Answer

Introduction of Doubling Strategy

Doubling is a useful strategy to use when multiplying. To multiply a number by four, double it twice. To multiply a number by eight, double it three times.The Using Doubles strategy involves decomposing one addend to make a double with the other addend. For example 7 + 8 is the same as 7 + 7 plus 1 more. After you've introduced the strategy and students have had a chance to work with manipulatives to understand the strategy, it's time for a little independent practice.

Using a doubling strategy, these are the eventual chances of winning

Doubling, a larger house limit and longer play all resulted in larger losses in the long run. In the short run, people using a doubling strategy are more likely to win. However, in the long term, they tend to lose.

What are the eventual chances of losing and going bankrupt

In the long run Eventual chances of losing is High

Bankrupt

Bankruptcy is the legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor's assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt.

Conclusion:

Some gamblers use a doubling strategy as a way of improving their chances of coming home a winner. This paper reports on the results of a computer simulation study of the doubling strategy and compares the short term and long term results of doubling to gambling with a constant sized bet. In the short term players using a doubling strategy were more likely to win, then lose, however in the long term, the losses suffered by doublers were much greater than that suffered by constant bettors. It is argued that the use of a doubling strategy is related to an incomplete conceptualization of random events sometimes known as the 'law of averages.'

A second simulation examined the fate of doubling in an ideal world in which the 'law of averages' was actually true. In this ideal world, doublers were much better off than constant bettors. The relationship of the results to a naive conceptualization of random events is discussed.