When solving the Gambler’s Ruin recurrence
we assume a trial solution of the form
which gives
At this stage, we divide by the lowest power, , because it is the greatest common factor of all terms.
Using the exponent rule
we obtain
which can be rewritten as
This equation is called the characteristic equation.
Why Not Divide by r^i?
We can divide by
instead, giving
Multiplying by again produces
which is the same result.
Therefore, both methods are correct.
The Key Insight
For powers of the same variable, the greatest common factor is obtained by taking the smallest exponent.
For example,
have greatest common factor
Similarly,
have greatest common factor
Dividing by the greatest common factor usually produces the cleanest algebra and avoids unnecessary fractions.
Key Takeaway
When solving linear recurrences, dividing by the lowest common power is often preferred because it removes the greatest common factor and leads directly to a simpler characteristic equation.
