Calculating standard deviation for fixed odds

[BruceZ]

[ QUOTE ]
Hi Bruce

Thanks for the detailed explenation, I think I have got that now. Just one more quick example to check that I fully understand it with more than 2 outcomes, suppose for example I was playing dice, where I was paid 8-1 when I hit a 6 and lost when I missed, my E.V. here would 0.5 and 5 times out of 6 I would be 1.5 times below average and the other 1 time I would be 7.5 above average, so I would work out my variance as follows :

(5*(-1.5^2) + 7.5^2)/6 = 11.25

and my standard deviation would be 3.35, is that correct?

Thanks again for your help

Joe.

[/ QUOTE ]

That's correct.