Problem 12. Peter and Paula play a game of chance that consistsof several rounds. Each individual round is won, with equalprobabilities, by either Peter or Paula; the winner then receivesone point. Successive rounds are independent. Each has staked 50for a total of 100, and they agree that the game ends as soon asone of them has won a total of 5 points; this player then receivesthe 100. After they have completed four rounds, of which Peter haswon three and Paula only one, a fire breaks out so that they cannotcontinue their game. How should the 100 be divided between Peterand Paula?
