CAS Exam MAS-I Spring 2019, Question 10
Study guide: Exam MAS-I
You are given the following information about two gamblers:
- The two gamblers start with a total fortune of 100 tokens between them
- They plan to go to two different and independent casinos to try their luck
- Each gambler has a 50% chance of winning 1 token and a 50% chance of losing 1 token at each play
- All plays are mutually independent
- The gamblers initially divide their 100 combined tokens to maximize the probability that both of their fortunes will eventually reach 100 tokens
Calculate the product of their initial fortunes, in tokens.
- A) Less than 1200
- B) At least 1200, but less than 1600
- C) At least 1600, but less than 2000
- D) At least 2000, but less than 2400
- E) At least 2400
Answer this question and see the worked solution