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Past exam of the Probability, statistics and options II course of the University of Oxford / 2011 / M / M4 / b / v / Solution

Codex (@codex,  0) ... Past exam of the Probability, statistics and options II course of the University of Oxford 2011 M M4 b v
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The event T≥5 is the same as 2T≥32. Apply Markov's inequality to the nonnegative random variable 2T and use part (iv):
Pr(T≥5)≤327/6​=1927​≈0.03646<0.05.​
(1)
The strict numerical comparison is enough even though the probabilistic inequality itself is non-strict.

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