Ralph Vince - Portfolio Mathematics

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The Random Process and Gambling Theory 9

Combination Probability

H2 .25 *
T1H1 .50 **

T2 (^25)
The asterisks to the right show how many different ways the combi-
nation can be made.For examplein the above two-coinflip there are two
asterisks for T1H1, since there are two different ways toget this combina-
tion.Coin A could be heads and coinBtails, or the reverse, coinAtails
and coin B heads.The total number of asterisksin the table (four)is the to-
tal number of different combinations you canget when flippingthat many
coins (two).
If we were to flip three coins, we would have:
Combination Probability
H3 .125

H2T1 (^375)
T2H1 .375

T3 (^125)
for four coins:
Combination Probability
H4 .0625

H3T1 .25
H2T2 .375 **

T3H1 .25
T4 .0625
and for sixcoins:
Combination Probability
H6 .0156

H5T1 .0937 **

H4T2 .2344 *
H3T3 .3125 ****
T4H2 .2344 *

T5H1 .0937 **
T6 .0156 *

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