Data Analytics Probability of Losing Six Times in A Row

1. A gambler believes that a strategy called “doubling up” is an effective way to gamble. The method requires the gambler to double the stake after each loss. Thus, if the initial bet is $1, after losing he will double the bet until he wins. After a win, he resorts back to a $1 bet. The result is that he will net $1 for every win. The problem however, is that he will eventually run out of money or bump up against the table limit. Suppose that for a certain game the probability of winning is .5 and that losing six in a row will result in bankrupting the gambler. Find the probability of losing six times in a row.

2. The probability that a university graduate will be offered no jobs within a month of graduation is estimated to be 5%. The probability of receiving one, two, and three job offers has similarly been estimated to be 43%, 31%, and 21%, respectively. Determine the following probabilities.

a. A graduate is offered fewer than two jobs.

b. A graduate is offered more than one job