Re: Beware of StatKing!
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For us non-mathematicians, could someone please tell us how to create an excel spreadshhet formula for B = -(sigma^2/2u)ln(r) ?
Thanks in advance.
By the way, Bruce, your posts have inspired me to learn statistics. Thanks!
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no problem...i can field this one for ya...at least i think my job as an economist for the government qualifies me for it lol...
in any case its just a substitution question you have. Sigma is the sample standard deviation you have calculated already. u is the win rate your hourly expectation and r is the amount of risk (in percents) you are willing to assume.
so in excel you link the standard deviation cell to sigma, win rate to u, and manually enter say a 1% risk of going broke.
hope this helps.
-Barron
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