When studying probability topics such as Gambler’s Ruin, Markov chains, or random walks, we often encounter equations like: At first glance, this may look confusing, especially for beginners. However, this equation is an example of a linear difference equation. Let us understand why. What is a Difference Equation? A difference equation relates values of a … Continue reading Understanding Why the Gambler’s Ruin Equation is a Linear Difference Equation