Created
January 13, 2015 17:27
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Simulations and graph or rolling average for St. Petersburg paradox
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| PlayGame <- function(winnings=0, turn=1) { | |
| if(sample(0:1, 1)) { | |
| winnings <- winnings + (2^turn) | |
| turn <- turn + 1 | |
| PlayGame(winnings, turn) | |
| } | |
| else { | |
| winnings | |
| } | |
| } | |
| RunSimulation <- function(timesToPlay=20000) { | |
| results <- rep(NA, timesToPlay) | |
| rollingAvg <- rep(NA, timesToPlay) | |
| for(i in 1:timesToPlay) { | |
| results[i] <- PlayGame() | |
| rollingAvg[i] <- mean(results[1:i]) | |
| } | |
| plot(rollingAvg, type="l", xlab="Number of Trials", ylab="Rolling Average", main="Rolling Average of St. Petersburg Simulations") | |
| } | |
| RunSimulation() |
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Is the y-axis the total winnings from however many times you played?