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s240779

Registered: 12/07/10
Posts: 12,880
Last seen: 2 months, 9 days
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Question about parameters for a gambling game
#19216791 - 12/02/13 11:23 AM (10 years, 1 month ago) |
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The percentages. I thought it meant the higher the percent, the better chance the house has, and you get bigger profits for giving the house a biggerr advantage. However, the higher the percentage, the lower your profits are. Can someone explain?
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DieCommie

Registered: 12/11/03
Posts: 29,258
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Re: Question about parameters for a gambling game [Re: s240779]
#19216795 - 12/02/13 11:25 AM (10 years, 1 month ago) |
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Quote:
I thought it meant the higher the number, the better chance the house has, but you get bigger profits in exchange?
No. If the house has a better chance than you why would you make the profits? The house makes the profits.
If the house has a 3% edge then you will lose 3% of your money, per gamble, on average.
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s240779

Registered: 12/07/10
Posts: 12,880
Last seen: 2 months, 9 days
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Re: Question about parameters for a gambling game [Re: DieCommie]
#19216808 - 12/02/13 11:28 AM (10 years, 1 month ago) |
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I'm still confused. When you choose 2 or 1, your profit potential goes up. So, you put the house at a disadvantage and win more money because of it?
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s240779

Registered: 12/07/10
Posts: 12,880
Last seen: 2 months, 9 days
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Re: Question about parameters for a gambling game [Re: s240779]
#19216891 - 12/02/13 11:52 AM (10 years, 1 month ago) |
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Confusing. Turns out the "max profit per bet" goes higher when the edge is greater, but the "profit" goes lower. I don't know the difference between them.
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DieCommie

Registered: 12/11/03
Posts: 29,258
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Re: Question about parameters for a gambling game [Re: s240779]
#19216928 - 12/02/13 12:00 PM (10 years, 1 month ago) |
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Quote:
Da2ra said: Confusing. Turns out the "max profit per bet" goes higher when the edge is greater, but the "profit" goes lower. I don't know the difference between them. 
Sounds like the difference between buying a lottery ticket or putting a dollar on red in roulette. One has a higher "potential profit" but lower "average profit".
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memes
Blessed



Registered: 01/11/05
Posts: 27,785
Loc: In a Tree
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Re: Question about parameters for a gambling game [Re: DieCommie]
#19217104 - 12/02/13 12:40 PM (10 years, 1 month ago) |
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think about it.
bets that give the house a better edge tend to pay out better, to entice the gambler to place them. (edit, to exlpain further): So, the bet's payout may be higher if it "wins", but in the long run, the "house edge" implies that if you played the game to infinity, they'd take 3% of your money
(edit #2 to offer the opposite lense view): think about it in terms of LOWERing the house edge. At the 1% game, you've taken away 2% of their house advantage, but you're likely only going to be paid a smaller amount if your "bet" wins.
i.e.: if a 3% bet paid you $7 for every $5 LTC you wagered, a 1% win may pay you 6 for 5.
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