8. THE PROBLEM OF GAMBLER’S RUIN
Ideally, we would like to obtain a practical algorithm for computing the probability of ruin, starting with a given capital and a given set of casino rules, when betting The Banker natural nine in Nevada Baccarat. This appears to be an extremely complicated and lengthy problem. However, we will obtain upper and lower bounds for the ruin probabilities in a class of simpler situations.
Recall that > 1/10, 1