Peter needs 100 for a special purpose he will stop gambling

Peter needs $100 for a special purpose; he will stop gambling when he gets it. Peter and Paul bet $10 on each game. if p=0.48 and Paul extends Peter unlimited credit, what is the probability Peter gets the $100?

Please provide a detailed answer

Solution

Yeah right...the St. Petersburg paradox. Lots of papers have been written over this. Google it.

Peter needs $100 for a special purpose; he will stop gambling when he gets it. Peter and Paul bet $10 on each game. if p=0.48 and Paul extends Peter unlimited c

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