Welcome to Analytics Jam
In the first post of Analytics Jam, To Kill a Martingale, we look at a simple gambling strategy known as the Martingale System. In it, the player bets a minimal amount until he loses a bet. Upon each successive loss, he doubles the wager, in order to make all of his money back upon an eventual win.
We create an Excel-based simulation to see what the real-world implications of using the strategy would be and then extrapolate the results beyond the casino to the world of finance and executive compensation.
It is a five part series. Click here to begin.