Rand Var, CI problem
So I'm trying to make a program similar to pokerstove, but for stud instead.
Assume my program generates a string of numbers like : -2, -2, -2, 10, -2, 10..... (ie lose 2 bets with some frequency and gain 10 bets with some frequency)
What I'd like to do is report the expected value of that stream within a certain confidence interval that the user specifies (say within .05 big bets)
Is the following approach valid ::
-Compute sample varience = 1/(n-1) * SUM( Xi - XBAR)
-Sample SD = sqrt(sample varience)
Lets assume the CI is 5 standard deviations big (2.5 SD on either side of the true E[x])
Now all I have to do is generate random number from the stream until the Sample SD = .02 BB.
Is this valid? Is it close enough?
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