Drawing Blanks

Premature Optimization is a Prerequisite for Success

Optional stopping

with one comment

The dealer shuffles a deck of cards, then begins to turn cards face up one-by-one. You can say “stop” at any moment, and if the next card is red – you win, and if it’s black – you lose.

It’s not difficult to prove that there is no winning strategy. No matter when you stop the process, you have an even chance.

In general, you cannot time the market http://en.wikipedia.org/wiki/Optional_stopping_theorem

In one of my next posts I’m going to tell about a much more exciting game, which is not a fair game though.

By the way, “martingale” is an anagram of “lame rating”

Advertisements

Written by bbzippo

05/19/2010 at 5:04 am

Posted in math

One Response

Subscribe to comments with RSS.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: