Everybody's been exposed to statistics at some point or another. The study of statistics is two-fold. First, there's applied statistics, which we use in applications like my Variance & Bankroll Calculators, that let us know if what we're experiencing is out of the norm. Second, there's statistical theory, which can help us avoid making general errors in judgment.
Three major theoretical concepts stand out, the Law of Large Numbers, the Central Limit Theorem, and Sampling Bias.
Math to Live By
Calculating Your Confidence Interval
How many games does it take to conclude that you're a winning player? Is your ROI reliable? Knowing your confidence interval is the first step to determining if you're a profitable player.