Part 5 · Summary

What did we learn?

Intuition lies

Gambler's fallacy, birthday paradox, Monty Hall

Tools

Probability, expected value, law of large numbers

House edge

Small % × thousands of bets = profit

Three heroes

Jagger

Collected data → found an anomaly

Thorp

Used the past → predicted the future

MIT

Put the law of large numbers on the players' side

The difference between the player and the casino is not luck.
It is who understands the mathematics better.