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Well no matter how you look at it, the expected value is .98 of whatever you paid. So in the long run you're certainly going to lose 2% of what you invested.
by cissou 12y ago
Well no matter how you look at it, the expected value is .98 of whatever you paid. So in the long run you're certainly going to lose 2% of what you invested.
- chrisfosterelli 12y agoBut you wouldn't be getting just your money back, you'd be winning the entire pot. Unless I misunderstand how this works.
- fela 12y agosay the pot contains 20, and you pay 80, you will have 80% chance of winning 18 in addition to your 80 and 20% chance of losing everything, if you do this many times you will still on average lose
- chrisfosterelli 12y agoRight, so (.80 * .98(100) + .20 * 0) = 78.4. Which is 2% less than the 80 you paid to entry... This makes more sense when I use an absolute (100), I think my mistake was in trying to calculate 100 as a variable amount, I must've made an error there. Thanks for explaining :)