Variance and Volatility of Red and Black Bets

[Mike_25]

Does red or black have higher variance when playing European roulette? In my view, the variance for both red and black bets is exactly the same. While the outcomes may differ in the short run, over a large number of spins the probability of winning either red or black is close to 50%. So in the long run, volatility evens out between the two bet types. The real difference lies in the house edge, with red/black bets carrying a higher risk of loss compared to other roulette wagers.

 

[Crazy_winner]

In European roulette, the variance is thought to be relatively low when betting on red or black. This is due to the fact that, except the green pocket, the likelihood of both the red and black pockets occuring is equal. Each wager has a winning probability of almost 50%.

 

[Hasan77]

Variance: Variance measures the average squared deviation from the mean of a set of data points. In the context of roulette bets, variance refers to the variability or spread of the outcomes of red and black bets over a large number of trials. A higher variance indicates a wider range of potential outcomes.

Volatility: Volatility is a measure of the rate at which the price or value of an asset or variable changes over time. In the context of red and black bets, volatility describes the frequency and magnitude of fluctuations in the outcomes of these bets. Higher volatility means that the results of the bets can vary significantly and frequently.

 

[mosesdera]

You make a good point. Red and black have the same chance over many spins. The odds are almost 50-50 if you play a lot. Some people think one color is riskier than the other but that's not true. The house always wins a bit more against red and black, though.

 

[Billionsuspect]

The average squared starting point from the mean of a group of data points is measured as variation. The variability or spread of the results of the red and black bets over a significant number of trials is referred to as variance in the context of roulette bets. The range of possible outcomes is greater when the variance is higher.