The Open Mathematics, Statistics and Probability Journal
2012, 4 : 1-4Published online 2012 July 27. DOI: 10.2174/1876527001204010001
Publisher ID: TOSPJ-4-1
Wald's Identity for the Fair Coin-Tossing Games and Some Applications
Department of Statistics
National Chengchi University No. 64, Sec. 2, ZhiNan Rd., Wenshan District
Taipei 11605, Taiwan (R.O.C).
ABSTRACT
We provide a simple proof of Wald's second identity for a class of problems that can be formulated as a fair coin-tossing game. The identity provides a useful technique for computing the expected stopping time and allows us to explore the second-order moment of the so-called heads-minus-tails distribution. We also introduce some interesting applications related to this simple identity.