The Strategy
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RonÕs expected winnings are:
–
E = pqa + p(1-q)b +(1-p)qc + (1-p)(1-q)d
–
Since e << 1, q = e, 1-q
Å
1
–
E
Å
pea + pb + (1-p)ec + (1-p)d
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Now substitute in the values of a, b, c, d,
using N instead of infinity:
–
E
Å
peN
–
p
–
(1-p)eN + (1-p)