x is the result of the (n+1)th draw sigma is the standard deviation after the first n draws pnl is the profit and loss the bettor can expect to earn
Thank you!
I’m still not following the entire derivation if I’m honest. Would you be able to share a more detailed derivation ? :)
Then imo the n+1 factor inside the expected value should be deleted. (n+1)(1n∑ni=1ai−1n+1∑n+1i=1ai)=(1+1n)∑ni=1ai−∑n+1i=1ai=1n∑ni=1ai−an+1
Whoops. Good catch. Fixing
x is the result of the (n+1)th draw sigma is the standard deviation after the first n draws pnl is the profit and loss the bettor can expect to earn
Thank you!
I’m still not following the entire derivation if I’m honest. Would you be able to share a more detailed derivation ? :)
Then imo the n+1 factor inside the expected value should be deleted. (n+1)(1n∑ni=1ai−1n+1∑n+1i=1ai)=(1+1n)∑ni=1ai−∑n+1i=1ai=1n∑ni=1ai−an+1
Whoops. Good catch. Fixing