Re: Help me settle this dispute (Simple EV problem)
[ QUOTE ]
Oh, Really?
[/ QUOTE ]
Yes, really. This was the first response to the OP:
[ QUOTE ]
There are cases where this bet should be declined. For example, if one's bankroll was $10 and a logarithmic utility function was being used this bet should not be excepted.
[/ QUOTE ]
Try reading the thread again.
If you have $1000 bankroll the question isn't "would you prefer $10 or a 50% chance at $21 and a 50% chance at nothing?" The question is "would you prefer $1000 or a 50% chance at $990 and a 50% chance at $1011?" There's a big difference between these two questions.
|