- If the probabilities are 50/50, and the events are completely independent or behave independently, then it really does not matter what strategy you use in any way.
And, as Major Joseph Vernam and Claude Shannon showed, you've just reinvented the one-time pad method of cryptography.
- If the probabilities favour outcome X vs. outcome Y, no matter how much better, always bet on the favorite X (again, if IID or pseudo-IID events). (I.E. forget everything I said in red above. The increased variance does not make up for the decreased base accuracy, so always bet the favorites.)
Yup.
So here's a question. You bet randomly Heads/Tails for 30 times, and each of those 30 times the toss is Tails. Do you change your strategy now?![]()
Am I permitted to question the fairness of the coin (flips)?
If the coin is irrebutably presumed to be fair, then, no. I just got realliy unlucky. If the presumption that the coin is fair is rebuttable, I suggest that thirty consecutive tails -- for a net probability of approximately a billion-to-one against -- far exceeds any reasonable alpha cutoff, and gives me grounds to reject the fairness of the coin.
