Answer:
Katherine obtains a fortune without going broke.
Explanation:
In the scenario of the Gambler's Ruin problem, where Alex starts with $7 and Katherine starts with $13, and Alex can win $1 with a probability of p = 0.53, we can determine the probability that Katherine obtains a fortune without going broke.
To solve this problem, we need to consider the probabilities of Alex winning and Katherine winning at each step of the game.
Since Alex has a 0.53 probability of winning $1, we can say that he has a 0.53 probability of moving closer to his fortune and Katherine's probability of moving away from her fortune.
The game will continue with updated amounts, and we need to calculate the probability of Katherine obtaining a fortune without going broke from this point.2.
By considering all possible outcomes and calculating the probabilities at each step, we can determine the probability that Katherine obtains a fortune without going broke.