variance of game
October 25th, 2016 at 12:55:39 PM
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Hi there,
I am reading a book about some basic math for slot math. The variance of a game of unit bet is given as
( sum_i hi*(xi - R)^2 ) / CYC
where hi is the hit for each pay xi, R is the average payback (return %), CYC is the full cycle of the game. When the bet is 1 unit, I can apply above above formula without any problem in the calculation. One think that confusing me is how do we understand this formula. R is in percentage (no unit) but xi is the pay in credit. How can we subtract two numbers in different units? One thing that comes to my mind is xi is not the absolute pay but the relative pay in 1-unit bet so xi has the same number as the actual pay but no unit in the case when bet is 1 unit. Is it correct?
Now if the minimum bet is not 1 unit but any number B (credits). To get the correct variance, shall we use the following ( sum_i hi*(xi/B -R)^2)/CYC instead?
Thanks.
I am reading a book about some basic math for slot math. The variance of a game of unit bet is given as
( sum_i hi*(xi - R)^2 ) / CYC
where hi is the hit for each pay xi, R is the average payback (return %), CYC is the full cycle of the game. When the bet is 1 unit, I can apply above above formula without any problem in the calculation. One think that confusing me is how do we understand this formula. R is in percentage (no unit) but xi is the pay in credit. How can we subtract two numbers in different units? One thing that comes to my mind is xi is not the absolute pay but the relative pay in 1-unit bet so xi has the same number as the actual pay but no unit in the case when bet is 1 unit. Is it correct?
Now if the minimum bet is not 1 unit but any number B (credits). To get the correct variance, shall we use the following ( sum_i hi*(xi/B -R)^2)/CYC instead?
Thanks.
