Expected Value — expected_value • bettoR

This function calculates the expected value for a given bet.

Usage

expected_value(payout, risk, win_prob)

Arguments

payout: The dollar amount won if the bet pays out (500)
risk: The dollar amount risked (550)
win_prob: The probability that the bet wins (0.54)

Value

Expected Value of a bet

Examples

expected_value(100, 110, 0.55)
#> [1] 5.5
expected_value(175, 100, 0.35)
#> [1] -3.75