 Solution

ID: past-exam-of-the-probability-statistics-and-options-ii-course-of-the-university-of-oxford/2011/m/m4/b/v/solution

T \geq 5

is the same as

2^{T} \geq 32

2^{T}

and use part (iv):

Pr (T \geq 5) \leq \frac{7/6}{32} = \frac{7}{192} \approx 0.03646 < 0.05.

The strict numerical comparison is enough even though the probabilistic inequality itself is non-strict.

 New to topics? Read the docs here!