Search results

Incorporating the cost of play is pretty straightforward (by subtracting 1 from the expected earnings each roll, which will be random). If you understand the dynamic principle, then it should be clear how to incorporate it. To demonstrate that my strategy is possibly different that your...

Yes, you take into account the cost of playing...every time you roll you just subtract $1 from the expected value in the dynamic programming procedure.

Perhaps it will be useful to think about a much simpler brainteaser that is a classic: You roll a die up to three times. Each time you roll, you can either take the number showing the dollars, or roll again. What are the expected winnings? What method would you use to solve this? In the...

How can you be so sure? To solve this problem, you first need to solve the optimal stopping time by doing a dynamic programming approach. To do this, start by calculating the average of the last roll, which is 50.5. Then you go backwards. You know that to get to the last roll, you needed to have...

It seems like it is asking if you know how to think about perpetual American Options. Try to do an expiration of five rolls. Get some intuition and move forward. You will probably get a lower bound of 87.5 after doing some tricks.

Hi Andy, could you please change my username to RRodriguez? Thanks!

Hello NeedOPT, Do you remember what kind of questions they were, and at what level? Math, Finance, Statistics, or Programming? Do you have a sample question? Thanks