Chamaco, on Dec 20 2005, 06:09 AM, said:
Trumpace, on Dec 20 2005, 10:55 AM, said:
I think there is a terminology mismatch.
Even so, the long run analysis (just calculating the expected IMPS per board) which you seem to think should work, can lead to incorrect strategies, as the above example of coin flip game shows.
If you run it over a long timeseries, we get closer to the mathematic odds, that is, the example of the insurance company, who is willing to risk to pay a big amount for a very low frequency risk, but cash in in the rest of the cases.
I think the example of the insurance company is much better than the example of the coin flipped:
the insurance can be one-year only, 2 years or longer, and the risk calculated on a 1 year period can be an analogy to the risk computed of the short-term" match (or set of matches) in bridge.
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The exmple of the biased coin flip is not well posed, because:
1) at the end of a single set, before we start a new set of coin flips, the % of outcomes are not the same as at the start, because the probability "a priori" has changed because in the previous set(s) the coin exited as tail X times and exited as heads Y times;
so if you have won one set, you are almost sure to lose the 2nd and 3rd set;
you cannot recompute the odds for the following sets with the original probabilities, the odds must be updated as a function of past results.
2) the % of risk is too high compared to the number of coin throws.
If you run the same analysis with every set having, say, 6+ throws, we all know that my side would be a winner.
The insurance example isn't right. The money made by the insurance company due to policy holders in that year is _not thrown_ away, unlike the IMPS you win in Bermuda Bowl 2004 are not counted in Bermuda Bowl 2005.
Hrothgar has answered your point 1).
But just to repeat...
Each coin flip is independent of the previous flips. Just because there have been a 1000 tails does not mean the 1001st has higher chances of coming up heads. The chances of heads on 1001st throw are still 75%. No more. No less.
About your point 2)
Consider a round with 7 flips.
If at least 2 heads come up, I make more tokens than you.
Probability of this = 1 - (0.75)^7 - 7*(0.75)^6*(0.25) ~ 0.55
I still win with 55% chances if the rounds are 7 flips each.
But,(I think, havent done the calculations) the long run analysis wins in the following case:
Suppose we pick the length of the round at random say from a very large set of numbers. Then, there is more chance that you will end up making money!
You might argue that in Bridge we have something similar... Each match would have a random number of such overtrick or down boards (which correspond to the round length in the coin flip game). But that is incorrect reasoning, since the total number of boards with the overtrick/down scenario are a fixed percentage of all possible bridge deals. Say that percentage is 2%. In a match of length 256, you should do the analysis for around 6 boards (and probably a few more in the neighbourhood of 6), as we expect 2% of the 256 boards to be overtrick or down boards, and based on the results of that, we should pick our strategy.
Of course, it depends on how the 256 boards are being generated, which by computer these days is pretty close to being truly random.
For 1%, 2%, 3% chances with a 1 IMP gain or 11 IMP loss, it seems that the long run strategy also works in most of the short runs (I have verified for runs upto 23). So the expert is right (play for overtricks to maximise score, if 5% or less chances of losing 11 IMPs while gaining 1 IMP), but by applying the wrong reasoning.