I'm curious what the equation is for calculating the risk, given a certain amount of hours played, of losing your trip bank. I assume some inputs will be the SD, N0, and EV of the game, and perhaps the overall ROR with unlimited play, but as I said I don't know the equation. Thanks
The only question I still have then is how to write out this cumulative normal distribution formula - N()? I see you've shown some results in the tables at the end of the chapter, but I still do not know what the formula is? Thanks. Sorry for my ignorance - I'm more of an applicator than a deriver.
autonymity,Originally Posted by autonymity
The formula for the cumulative normal distribution formula N() is shown in Wikipedia at https://en.m.wikipedia.org/wiki/Standard_normal_table
If instead you are asking how to calculate it, use Microsoft Excel's NORM.S.DIST function. For example, on page 134 for the 200-unit bankroll Don shows N(-1.48) to be 0.0694. In Excel, the formula "=NORM.S.DIST(-1.48,1)" returns a value of 0.0694366...
Note that this NORM.S.DIST function was introduced in Excel 2010. If your version is older, the function name is spelled without periods: NORMSDIST(-1.48).
Hope this helps!
Dog Hand
autonymity, in Excel, =NORM.S.DIST(-1.48,0) gives you normal distribution and =NORM.S.DIST(-1.48,1) gives you cumulative normal distribution. Normal distribution is simple to calculate. Cumulative normal distribution is a calculus problem as it calculates area under a curve and requires either use of a Taylor series or an approximation technique. CVData/CVCX uses an approximation technique which gives an answer of .0694366233333317.
Last edited by Norm; 08-18-2024 at 11:14 AM.
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