A Gambler Has an Opportunity to Play a Coin Tossing

question 28

Multiple Choice

A gambler has an opportunity to play a coin tossing game in which he wins his wager with probability .49 and loses his wager with probability .51.Suppose the gambler's initial stake is $40 and the gambler will continue to make $10 bets until his fortune either reaches $0 or $100 (at which time play will stop) .Which of the following statements is true?

• A)Increasing the amount of each wager from $10 to $20 will increase the expected playing time.
• B)Increasing the initial stake to $50 will increase the expected playing time.
• C)Reducing the initial stake to $20 will increase the expected playing time.
• D)Increasing the probability of winning from .49 to 1.0 will increase the expected playing time.