Hi guys
In a game of chance where the player knows the expected value (say -0.37), how do you work out what the decimal odds should be in order to break even in long run?
(Decimal odds 2.0 = 1/1)
Any help much appreciated
Mike
Hi guys
In a game of chance where the player knows the expected value (say -0.37), how do you work out what the decimal odds should be in order to break even in long run?
(Decimal odds 2.0 = 1/1)
Any help much appreciated
Mike
Hello, Mike!
If I understand your question, there is no unique answer.
In a game of chance where the player knows the expected value (say -0.37),
how do you work out what the odds should be in order to break even in long run?
Without knowing the rules of the game,
. . the expected value is insufficient information.
Game 1
You flip a coin.
. . If you get Heads, you win $0.63
. . If you get Tails, you lose $1.00
The expected value is -$0.37.
I'm not sure how to "work out the odds"
. . since the nature of a coin flip cannot be changed.
We can, however, change the payoffs (and bet "even money").
Game 2
You roll a die.
. . If you get a "1", you win $0.78.
. . Otherwise, you lose $0.60.
The expected value is -$0.37.
Game 3
You randomly select a card from a full deck.
. . If it is an Ace, you win $1.19.
. . Otherwise, you lose $0.50.
The expected value is -$0.37.
Get it?