Random walk type problem with time increments

75 Views Asked by At

Imagine you have $\$50$ and every $2$ minutes you either gain or lose $33$ cents. How would you model the evolution of the hypothetical bankroll for the next hour?

My approach based on what i've read about about random walks:

$\sigma=.33\cdot(\frac{60}{2})^.5$

$\mu=50.$

Plug these into a normal distribution to find the probability of having $x$ amount of money after an hour.

Some sources say if $\frac{1}{2}$ then $\sigma$ would have to be divided by $2$. But others just use the square root.