Hi Don/other experts,

How to find covariance of a game ?

There is an example how to find covariance of Blackjack at this link https://wizardofodds.com/games/blackjack/variance/

Firstly, find total variance of N hands per round, and use the formula,

Total variance of N hands per round= N* Variance of 1 hand per round+ N * (N-1) * covariance.

Fro example, variance of 1 hand per round = 1.31 and Total variance of 2 hands per round(through simulations) = 3.565, N = 2,

So, 3.565 = 2 * 1.31 + 2(1)* covariance

covariance = (3.565 - 2.62) /2 = 0.4725.

My question : Is simulations the only way to find total variance of N hands per round ?

Regards

James

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