Venthus
Venthus
Joined: Dec 10, 2012
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March 21st, 2018 at 9:31:57 PM permalink
So I came across a place recently that had superficially identical slot machines but gave wildly different amounts of points which I can only attribute to different payback settings, error, or apathy. (Depending on the exact machine, it ranges from .1% to 10%.)

It leads me to wonder exactly how the math breaks down if you take two machines that function identically, set to different paybacks, but compensate the lower payback with enough cash back to make them equitable, in terms of percentage. My gut says that the lower percentage with cashback would experience lower variance since you're guaranteed a fixed portion back unrelated to getting a win, but I have no idea if that's accurate.
Nathan
Nathan
Joined: Sep 2, 2016
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March 22nd, 2018 at 6:44:30 AM permalink
This type of question should have had a response by now. Really surprised you haven't gotten a response yet. I feel that you are accurate in your assumption that lower percentage with cash back is lower variance. That smells like roses to me, not fish. :) In other words, that checks out with me. :)
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DRich
DRich
Joined: Jul 6, 2012
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March 22nd, 2018 at 6:52:19 AM permalink
Quote: Venthus

So I came across a place recently that had superficially identical slot machines but gave wildly different amounts of points which I can only attribute to different payback settings, error, or apathy. (Depending on the exact machine, it ranges from .1% to 10%.)

It leads me to wonder exactly how the math breaks down if you take two machines that function identically, set to different paybacks, but compensate the lower payback with enough cash back to make them equitable, in terms of percentage. My gut says that the lower percentage with cashback would experience lower variance since you're guaranteed a fixed portion back unrelated to getting a win, but I have no idea if that's accurate.



It depends on how the points are awarded. If you have two machine where one is set at 90% and the other is set at 95% the first machine would have to give 5% more of coin in for the points for the two machines to be equal. In that scenario, you are right, the 90% machine would offer lower variance.
Living longer does not always infer +EV

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