Investor Presentaiton

Step 3: Multiply vertical probabilities Flip 1 p 1/2 Start Flip 2 Flip 3 P₁ =2 H p = 1/2 W2=22 P2 2 Flip n 1-p 1/2 1 p 1/2 1/2 1-p 1/2 p W3=23 P3 = 2-3 [H] p 1/2 1 p 1/2 W₁ =2" Po 2 Let w "winnings" and wn = "winnings if game ends on flip n' Pn = P("game ends on flip n") = (1 - p)n-1 p = 2-n

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