| Article ID: | iaor1988663 |
| Country: | Israel |
| Volume: | 25 |
| Issue: | 2 |
| Start Page Number: | 437 |
| End Page Number: | 443 |
| Publication Date: | Jun 1988 |
| Journal: | Journal of Applied Probability |
| Authors: | Fristedt Bert, Berry Donald A. |
Consider a sequence of conditionally independent Bernoulli random variables taking on the values 1 and ¸-1. The objective is to stop the sequence in order to maximize the discounted sum. Suppose the Bernoulli parameter has a beta distribution with integral parameters. It is optimal to stop when the conditional expectation of the next random variable is negative provided the discount factor is less than or equal to