Certaincy equivalent meaning. a decisions question
OK.
A friend gambled with my money/ Taking unneeded risk. AgAINST my instructions.
I calculated that I would have took this gamble for an Ev of $10,000.
Now how much does my friend owe me?
10000 or half of this?
I remembern vaguely that the optimal bet size means that the ev is twice the CE of the variance of the bet. Is that true?
Or to the bottom line. I would have gambled thus for 10K. How much is my irresponsible friend owing me mathematically
PS. He agreed to pay what the formula dictates..........
Happy new year
