My Math Forum Probability Distribution

 November 5th, 2007, 05:00 PM #1 Newbie   Joined: Oct 2007 Posts: 17 Thanks: 0 Probability Distribution
 November 5th, 2007, 05:39 PM #2 Global Moderator     Joined: Nov 2006 From: UTC -5 Posts: 16,046 Thanks: 937 Math Focus: Number theory, computational mathematics, combinatorics, FOM, symbolic logic, TCS, algorithms Chance of 3: 1/4 Payoff for 3: $2 Chance of non-3: 3/4 Payoff for non-3: -$2 Expected return: 1/4 * $2 + 3/4 * -$2 These values are for the player. For the house, reverse the sign for each dollar amount.
November 5th, 2007, 07:53 PM   #3
Newbie

Joined: Oct 2007

Posts: 17
Thanks: 0

Thanks CR as always

How accurate are these results

Quote:
 Each result 1, 2, 3, and 4 has an equal chance of occuring and that is 1/4. So the player wins with probility 1/4 and loses with probability 3/4. His expected return is: r = (4)(1/4) + (0)(3/4) - 2 = -1 That is he gets $4 a quarter of the time$0 3/4 of the time and always pays \$2 to play. We could treat the cost to play differently to get: r = (2)(1/4) + (-2)(3/4) = -1.

November 5th, 2007, 07:56 PM   #4
Global Moderator

Joined: Nov 2006
From: UTC -5

Posts: 16,046
Thanks: 937

Math Focus: Number theory, computational mathematics, combinatorics, FOM, symbolic logic, TCS, algorithms
Quote:
 Originally Posted by Infiniti How accurate are these results

Perfectly, of course.

 Thread Tools Display Modes Linear Mode

 Similar Threads Thread Thread Starter Forum Replies Last Post lemon_kaka Advanced Statistics 5 September 23rd, 2013 01:07 PM 450081592 Advanced Statistics 5 November 11th, 2011 02:57 PM Aqil Advanced Statistics 2 April 12th, 2011 01:07 PM tfhawk Algebra 1 July 18th, 2009 06:27 AM RossBrons Advanced Statistics 1 December 28th, 2008 08:35 AM

 Contact - Home - Forums - Cryptocurrency Forum - Top