Thank you both.
- - Norma
--- In vpFREE@yahoogroups.com, 007 <007@...> wrote:
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> This needs clarification. The variance takes each possibility and the difference each possibility is from the overall expected value of the game, squares each of these differences, and then adds those squares. Imagine a game that has 4 possibilities. If 3 of them occur, 1 unit is lost. If the 4th occurs, the player wins 3 units. The expected value of the game is 0. The variance is therefore 3/4 x ((0 - 1) ^ 2) + 1/4 x ((3 - 0) ^ 2) = 3.
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> ----- Frank <frank@...> wrote:
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> >By "Volatility" I assume you mean "variance".
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> > Variance, a common statistics value, is calculated by multiplying the probability of each final result by the square of its actual win (or loss) in betting units and summing all of those products.
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> > FPJoB = 19.51
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> > FPDW = 25.83
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> > 5 7 10 Double Bonus = 28.26
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> > 6 -10 Double-double bonus = 38.43
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> > I got these using the beta version of OpVP. I did not do them by hand. If anyone wants to check them???
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> > ~FK
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> > --- In vpFREE@yahoogroups.com, "Norma Posy" <normagirl9@> wrote:
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> > > How do FPDW, FPJorB, Double Bonus, and Double-double bonus compare as regards volatility?
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> > > General question: How is volatility computed, anyway?
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> > > - - Norma
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