Introduction to Probability · Problem 10.2.3

Generating Functions — Grinstead & Snell

Mathematics — Probability · branching-processes

Problem

In the chain letter problem (see Example 10.14) find your expected profit if (a)

p_0 = 1/2

p_1 = 0

, and

p_2 = 1/2

. (b)

p_0 = 1/6

p_1 = 1/2

, and

p_2 = 1/3

. Show that if

p_0 > 1/2

, you cannot expect to make a profit.