The Use of Standard Deviation in Slots
The Fremont Street Experience (FSE) is perhaps the only casino in Las Vegas that offers more than enough room for even the largest grown-up. The expansive floor plan and sleek design of the FSE promise to give a new person a feeling of being “in control” of his or her own living space. In this highly-specialized area of the city, the gambling games are designed around specific casino games so that the participant will be thoroughly familiar with all the odds and betting options before entering any room. That way, even if a new comer to Las Vegas does not know a second word about playing blackjack or roulette, they can still comfortably stroll through the casino shops and feel at home.
But the most alluring feature of the FSE for many gamblers is the fact that it provides more slots than almost all the other casinos combined. The sheer number of game cards and the exciting games offered on each card helps gamblers enjoy some of the best gambling entertainment available anywhere. A typical casino guest may walk out of a Las Vegas casino with several thousand dollars in their pocket. But at the FSE, a gambler will walk away with even more money – because they can play one of their many slot games right there in the casino.
The expansive gambling surface area of the FSE means that even those with very little experience with roulette, blackjack, or other high stakes gambling games can still find a huge amount of excitement and money in the slots. Of course, even the big bettors have to practice some strategy before they can make some consistent money playing these slots. But that strategy can help any casino go from a beginner’s day dream to a week-long experience of success. Of course, for those who prefer to stay close to the action and do more of the walking rather than gambling, the FSE is perfect.
What makes the Fidelity Investments logo series so appealing to a casino player is its use of a statistical method of betting that is called “standard deviation.” Standard deviation is used to calculate the risk or return on an investment. It is important to understand what it means because it is the number one factor in casino gambling. The casino is betting one unit for every two bets placed. When the casino first estimates the expected loss, it places all of its bets on a number higher than the highest estimate. As time passes, the casino will take its cumulative Standard Deviation number and compare it to the actual observed loss.
If the Standard Deviation is much lower than the casino’s predicted loss, then it has a positive expected value. For instance, let’s look at a hypothetical problem in which a casino is given a number N. They then place all of their bets on random machines with a payout of three quarters of a million dollars. After a few days, the casino will have calculated that it has gained a net profit of forty-three million dollars. However, since there are no guarantees, it is very likely that they will lose more money during the remaining life time of the bet. The casino may use this information to increase the size of its stakes while playing slot machines, thereby increasing its profits even more. While casinos do not really care about the short term results, they definitely care about long term profits.
As the owner of a casino business, you may be responsible for the results that occur on the Las Vegas casino floors. While you may try to use statistical analysis to improve your odds of winning, you should never rely on it entirely. As the old saying goes, “The probability of something bad happening is always higher that doing nothing.” While the casino games provide an entertaining way for you to spend your spare time, they also present you with a serious responsibility.