This post is based on the fantastic PlusMaths article on bluffing- which is a great introduction to this topic. If you're interested then it's well worth a read. This topic shows the power of mathematics in solving real world problems - and combines a wide variety of ideas and methods - probability, Game Theory, calculus,... Continue Reading →
The Gambler’s Fallacy and Casino Maths
http://www.youtube.com/watch?v=K8SkCh-n4rw The Gambler's Fallacy The above video is an excellent introduction to the gambler's fallacy. This is the misconception that prior outcomes will have an effect on subsequent independent events. The classic example for this is the gambler who watches a run of 9 blacks on a roulette wheel with only red and black, and... Continue Reading →