Stat Trivial: Beat the house...round two for Nicky
an island somewhere where is no law on how much a casino need in reserve...a small mom and pop casino, called Tiki Casino, has about 1 million dollars in cash and chips at any given night. the casino has one high limit bacarrat table that (has limit of 100-10k) attract a very rich whale from Singapore, a lad named Nick L. All the casino games are standard, so this particular high limit bacarrat table has about 1.25% house edge on player/banker bets (for simplicity).
here is the question.
Tiki Casino is a private business that is worth about 20 million dollars. Nick L. is a lucky futures trader who has amassed a big fortune of 2 billion dollars. Nick L. is going try to bankrupt the casino...i.e. by winning about 20 million dollars before he dies (assume that is long enough for one of them to go broke first).
The game is fair, and Nick L. has access to his 2 billion fortune anytime he wants but he can only bet at that one 100-10k baccarat table. The casino can "mortgage" its assets to other rich wiseguy casinos on that island.
Question is: by playing at that baccarat table only, what is prob % that Nick L will bankrupt the casino?
Follow up question: what should be Nick L.'s minimum fortune be to take out the house with 90% probability? 95%? 99%?
here is the question.
Tiki Casino is a private business that is worth about 20 million dollars. Nick L. is a lucky futures trader who has amassed a big fortune of 2 billion dollars. Nick L. is going try to bankrupt the casino...i.e. by winning about 20 million dollars before he dies (assume that is long enough for one of them to go broke first).
The game is fair, and Nick L. has access to his 2 billion fortune anytime he wants but he can only bet at that one 100-10k baccarat table. The casino can "mortgage" its assets to other rich wiseguy casinos on that island.
Question is: by playing at that baccarat table only, what is prob % that Nick L will bankrupt the casino?
Follow up question: what should be Nick L.'s minimum fortune be to take out the house with 90% probability? 95%? 99%?