README.md

This class defines the expected rate value based of a risk. We use the next formula:

E(R) = [(p(P))] - [(1-p)(L)]

The expectative consist of certain probabilities of win or loss and the amount of the factors

that you win or loss. If the rate of return if is > 0, We can win depending of the risk.

E(R) is calculated in term of each individual game.

p = probability of win.

1-p = probability of loss.

P = win factor.

L = loss factor.

Examples:

1.- I am going to flipping a coin, if the coin gets head I win $10, else I loss $10.

Will I take the risk?

E(R) = (0.5*10) - (1-0.5)(10) = 0

So I wont. because the rate of return is 0, there is no money!!

INPUT: [0.5, 1, 1]

2.- If I win I get $2, else I loss $1. I have 60% probability to loss and 40% of win.

E(R) = (0.4*2) - (1-0.4)(1) = 0.2

So the average rate of return is $0.20 each game. Maybe I will.

INPUT: [0.4, 2, 1]

3.- I win $2 if the thin wrestler win, else $1 if fat wrestler win.

If thin wrestler has 30% probability to win.

Will I take the risk for this wrestling?

E(R) = (0.3*2) - (1-0.3)(1) = 0.6 - 0.7 = -0.1

So I wont. I loss -0.1 each game, so If I play 100 times -> 100-0.1=10. I could loss $10

INPUT: [0.3, 2, 1]

E(R) = [(p(P))] - [(1-p)(L)]

The expectative consist of certain probabilities of win or loss and the amount of the factors

that you win or loss. If the rate of return if is > 0, We can win depending of the risk.

E(R) is calculated in term of each individual game.

p = probability of win.

1-p = probability of loss.

P = win factor.

L = loss factor.

Examples:

1.- I am going to flipping a coin, if the coin gets head I win $10, else I loss $10.

Will I take the risk?

E(R) = (0.5*10) - (1-0.5)(10) = 0

So I wont. because the rate of return is 0, there is no money!!

INPUT: [0.5, 1, 1]

2.- If I win I get $2, else I loss $1. I have 60% probability to loss and 40% of win.

E(R) = (0.4*2) - (1-0.4)(1) = 0.2

So the average rate of return is $0.20 each game. Maybe I will.

INPUT: [0.4, 2, 1]

3.- I win $2 if the thin wrestler win, else $1 if fat wrestler win.

If thin wrestler has 30% probability to win.

Will I take the risk for this wrestling?

E(R) = (0.3*2) - (1-0.3)(1) = 0.6 - 0.7 = -0.1

So I wont. I loss -0.1 each game, so If I play 100 times -> 100-0.1=10. I could loss $10

INPUT: [0.3, 2, 1]