Gamblers Ruin Problem

The Gambler’s Ruin problem explores the likelihood that a gambler with finite resources will eventually deplete their money when making repeated bets with unfavorable odds. It models a scenario where the gambler gains or loses small amounts over time, and aims to determine the probability of reaching a specific winning goal before going broke. Factors like the initial capital, betting strategy, and house edge influence this probability. The analysis provides insight into risk management and the inevitable potential for ruin in situations involving repeated bets with unfavorable odds.