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Extinction probability for a splitting amoeba

Question

A colony starts with one amoeba. Every minute each amoeba independently either dies, stays as it is, splits into two, or splits into three, each with probability 14\tfrac14. What is the probability that the colony eventually dies out?

Short answer

2−1≈0.414\sqrt2-1\approx0.414. Conditioning on the first minute, the extinction probability pp solves p=14(1+p+p2+p3)p=\tfrac14(1+p+p^2+p^3), i.e. (p−1)(p2+2p−1)=0(p-1)(p^2+2p-1)=0. Since the mean offspring is 1.5>11.5>1, extinction is the smallest root in [0,1][0,1], namely 2−1\sqrt2-1.

Adapted from Zhou, A Practical Guide to Quantitative Finance Interviews, sec. 4.3 Conditional Probability and Bayes' Formula, 'Amoeba population', p.78; question and answer rewritten by SelfMadeQuant.com.

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