VARIANCE
September 25th, 2017 at 11:17:33 PM
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What is the variance for big/small baccarat side bet?
From the wizard of odds, The Small bet is the same as the 4 bet above, paying 3 to 2 if the total Player and Banker cards equals four. Based on six decks, the probability of winning is 37.8925% and the house edge is 5.26875%.
The Big bet pays if the total Player and Banker cards equals five or six and pays 0.54 to 1. Based on six decks, the probability of winning is 61.1075% and the house edge is 4.35445%.
I want to know what is the variance of this sidebet.
Someone help me answer this question :) Thank you!
From the wizard of odds, The Small bet is the same as the 4 bet above, paying 3 to 2 if the total Player and Banker cards equals four. Based on six decks, the probability of winning is 37.8925% and the house edge is 5.26875%.
The Big bet pays if the total Player and Banker cards equals five or six and pays 0.54 to 1. Based on six decks, the probability of winning is 61.1075% and the house edge is 4.35445%.
I want to know what is the variance of this sidebet.
Someone help me answer this question :) Thank you!
September 26th, 2017 at 5:54:54 AM
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If I understand statistics correctly, variance in this case = (probability of winning) x (1.5 - mean value of the bet)2 + (probability of losing) x (-1 - mean value of the bet)2
The mean value of the bet is 0.378925 x 1.5 + 0.621075 x (-1) = -0.0526875
If I am calculating this right, the variance = 0.378925 x (1.5 - (-0.0527875))2 + 0.621075 x (-1 - (-0.0527875))2 = 0.356174
The mean value of the bet is 0.378925 x 1.5 + 0.621075 x (-1) = -0.0526875
If I am calculating this right, the variance = 0.378925 x (1.5 - (-0.0527875))2 + 0.621075 x (-1 - (-0.0527875))2 = 0.356174
