Adding 50% to EV

assume_R

Well-Known Member
#1
This is probably a very obvious question, but why do you have to add 50% to the EV to get the house edge?

For example, if your expected win is -50.4%, that is considered a house edge of .4% correct?

But -50.4% = (End_Money - Initial_Money) / (Money_Wagered)

Or am I calculating EV wrong?

Thanks!
 

Sonny

Well-Known Member
#2
assume_R said:
For example, if your expected win is -50.4%, that is considered a house edge of .4% correct?
It depends on what you mean by "expected win of -50.4%." Normally the term "expected win" means EV, so if you bet $1 and expect to lose $0.504 then the house edge is -50.4%. But if you have a 50.4% probability of losing an even money bet then the house edge is 49.6% - 50.4% = -0.8%.

-Sonny-
 

psyduck

Well-Known Member
#3
Sonny said:
But if you have a 50.4% probability of losing an even money bet then the house edge is 49.6% - 50.4% = -0.8%.

-Sonny-
Shouldn't the house edge be 0.8% and the player's edge be -0.8%?
 
Top