ret.gunslinger5380 wrote:
> Hello. I'm not new to VP, but I am new to some of the terms such as
> EV and EC. If it is not too much bother, could you please explain briefly
> what these terms mean?
vpFREE Acronyms:
http://www.west-point.org/users/usma1955/20228/V/Gloss.htm
From the vpFREE FAQ:
9. What does Expected Value (EV) and Expected Return (ER)
mean? - EV is the weighted sum of all possible outcomes
(after each outcome has been multiplied by its probability
of occurring). Relating this to VP, the EV of a video poker
hand is the average value of all the wins attainable, after
holding the optimum cards and redrawing. EV is expressed in
units of coin-in or dollars.
ER is a percentage return figure that is a function of EV,
and it equals [EV] divided by [Coin-in].
As an example, FPDW has a RF cycle of 45,281.93 hands, and
the EV of playing those hands by a 25c player ($1.25 per
hand) is $57,033.72. Total coin-in equals $56,602.41, so the
ER is 100.7620%.
9a. What does Certainty Equivalent (CE) mean? - CE is a
guaranteed return that someone would accept, rather than
taking a chance on a higher, but uncertain, return.
CE = EV - variance/2xBankroll.
Posted by: vpFREE3355 <vpfree3355@gmail.com>
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