Stat 35b: Introduction to Probability with Applications to Poker Outline for the day: 1. Combos, permutations, and A  vs 2  after first ace 2.Conditional.

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Stat 35b: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
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Stat 35b: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
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Stat 35: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
Stat 35b: Introduction to Probability with Applications to Poker
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Stat 35b: Introduction to Probability with Applications to Poker Outline for the day: 1. Combos, permutations, and A  vs 2  after first ace 2.Conditional prob., independence, & multiplication rule 3.Independence and dependence examples 4.More counting problems: straight draw example 5.Odds ratios 6.Random variables 7.cdf, pmf, and density 8.Expected value 9.Heads up with AA?   u 

1. Deal til first ace appears. Let X = the next card after the ace. P(X = A  )? P(X = 2  )? (a) How many permutations of the 52 cards are there? 52! (b) How many of these perms. have A  right after the 1st ace? (i) How many perms of the other 51 cards are there? 51! (ii) For each of these, imagine putting the A  right after the 1st ace. 1:1 correspondence between permutations of the other 51 cards & permutations of 52 cards such that A  is right after 1st ace. So, the answer to question (b) is 51!. Answer to the overall question is 51! / 52! = 1/52. Obviously, same goes for 2 .

Ex. You have AK. Given this, what is P(at least one A or K comes on board of 5 cards)? Wrong Answer: P(A or K on 1st card) + P(A or K on 2nd card) + … = 6/50 x 5 = 60.0%. No: these events are NOT Mutually Exclusive!!! Right Answer: choose(50,5) = 2,118,760 boards possible. How many have exactly one A or K? 6 x choose(44,4) = 814,506 # with exactly 2 aces or kings? choose(6,2) x choose(44,3) = 198,660 # with exactly 3 aces or kings? choose(6,3) x choose(44,2) = 18,920 … … altogether, 1,032,752 boards have at least one A or K, So it’s 1,032,752 / 2,118,760 = 48.7%. Easier way: P(no A and no K) = choose(44,5)/choose(50,5) = / = 51.3%, so answer = 100% % = 48.7%

Example: Poker Royale: Comedians vs. Poker Pros, Fri 9/23/05. Linda Johnson $543,000Kathy Kolberg $300,000 Phil Laak $475,000Sue Murphy $155,000 Tammy Pescatelli $377,000Mark Curry $0. No small blind. Johnson in big blind for $8000. Murphy (8  8  ). Calls $8,000. Kolberg. (9  9 u ). Raises to $38,000. Pescatelli (Kh 3  ) folds, Laak (9  3  ) folds, Johnson (J  6 u ) folds. Murphy calls. TV Screen: Kolberg. (9  9 u ) 81% Murphy (8  8  ) 19% Flop: 8  T u T . Murphy quickly goes all in. Kolberg thinks for 2 min, then calls. Laak (to Murphy): “You’re 92% to take it down.” TV Screen:Kolberg. (9  9 u ) 17% Murphy (8  8  ) 83% Who’s right? (Turn 9  river A u ), so Murphy is eliminated. Laak went on to win.

TV Screen: Kolberg. (9  9 u ) 81%Murphy (8  8  ) 19% Flop: 8  T u T . Murphy quickly goes all in. Kolberg thinks for 2 min, then calls. Laak (to Murphy): “You’re 92% to take it down.” TV Screen:Kolberg. (9  9 u ) 17%Murphy (8  8  ) 83% Cardplayer.com: 16.8% 83.2% Laak (about Kolberg): “She has two outs twice.” P(9 on the turn or river, given just their 2 hands and the flop)? = P(9 on turn) + P(9 on river) - P(9 on both) = 2/45 + 2/45 - 1/choose(45,2) = 8.8%Given other players’ 6 cards? Laak had a 9, so it’s 1/39 + 1/39 = 5.1%

Given just their 2 hands and the flop, what is P(9 or T on the turn or river, but not 98 or T8)? P(9 or T on the turn) + P(9 or T on river) - [P(9T) + P(98) + P(T8)] = 4/45 + 4/45 - [choose(4,2) ]/choose(45,2) = 16.77% TV Screen: Kolberg. (9  9 u ) 81%Murphy (8  8  ) 19% Flop: 8  T u T . Murphy quickly goes all in. Kolberg thinks for 2 min, then calls. Laak (to Murphy): “You’re 92% to take it down.” TV Screen:Kolberg. (9  9 u ) 17%Murphy (8  8  ) 83% Cardplayer.com: 16.8% 83.2% other players’ 6 cards? Laak had a 9, so it’s 1/39 + 1/39 = 5.1%

2. Conditional Probability and Independence P(A & B) is often written “P(AB)”. “P(A U B)” means P(A or B [or both]). Conditional Probability: P(A given B) [written“P(A|B)”] = P(AB) / P(B). Independent: A and B are “independent” if P(A|B) = P(A). Fact (multiplication rule for independent events): If A and B are independent, then P(AB) = P(A) x P(B) Fact (general multiplication rule): P(AB) = P(A) P(B|A) P(ABC…) = P(A) x P(B|A) x P(C|A&B) …

3. Independence and Dependence Examples Independence: P(A | B) = P(A) [and P(B|A) = P(B)]. So, when independent, P(A&B) = P(A)P(B|A) = P(A)P(B). Reasonable to assume the following are independent: a) Outcomes on different rolls of a die. b) Outcomes on different flips of a coin. c) Outcomes on different spins of a spinner. d) Outcomes on different poker hands. e) Outcomes when sampling from a large population. Ex: P(you get AA on 1st hand and I get AA on 2nd hand) = P(you get AA on 1st) x P(I get AA on 2nd) = 1/221 x 1/221 = 1/4641. P(you get AA on 1st hand and I get AA on 1st hand) = P(you get AA) x P(I get AA | you have AA) = 1/221 x 1/(50 choose 2) = 1/221 x 1/1225 = 1/ (Negreanu vs. Elezra….)

Example: High Stakes Poker, 1/8/07: (Game Show Network, Mon nights): Greenstein folds, Todd Brunson folds, Harman folds. Elezra calls $600. Farha (K  J  ) raises to $2600 Sheikhan folds. Negreanu calls, Elezra calls. Pot is $8,800. Flop: 6  T  8 . Negreanu bets $5000. Elezra raises to $ Farha folds. Negreanu thinks for 2 minutes….. then goes all-in for another $96,000. Elezra: 8  6 . (Elezra calls. Pot is $214,800.) Negreanu: A u T  At this point, the odds on tv show 73% for Elezra and 25% for Negreanu. They “run it twice”. First: 2  4 . Second time? AA 8u!8u! P(Negreanu hits an A or T on turn & still loses)?

Given both their hands, and the flop, and the first “run”, what is P(Negreanu hits an A or T on the turn & loses)? Since he can’t lose if he hits a 10 on the turn, it’s: P(A on turn & Negreanu loses) = P(A on turn) x P(Negreanu loses | A on the turn) = 3/43 x 4/42 = 0.66% (1 in 150.5) Note: this is very different from: P(A or T on turn) x P(Negreanu loses), which would be about 5/43 x 73% = 8.49% (1 in 12)

4. Odds ratios: Odds ratio of A = P(A)/P(A c ) Odds against A = Odds ratio of A c = P(A c )/P(A). Ex: (from Phil Gordon’s Little Blue Book, p189) Day 3 of the 2001 WSOP, $10,000 No-limit holdem championship. 613 players entered. Now 13 players left, at 2 tables. Phil Gordon’s table has 5 other players. Blinds are 3,000/6, ,000 antes. Matusow has 400,000; Helmuth has 600,000; Gordon 620,000. (the 3 other players have 100,000; 305,000; 193,000). Matusow raises to 20,000. Next player folds. Gordon’s next, in the cutoff seat with K  K  and re-raises to 100,000. Next player folds. Helmuth goes all-in. Big blind folds. Matusow folds. Gordon’s decision…. Fold! Odds against Gordon winning, if he called and Helmuth had AA?

What were the odds against Gordon winning, if he called and Helmuth had AA? P(exactly one K, and no aces) = 2 x C(44,4) / C(48,5) ~ 15.9%. P(two Kings on the board) = C(46,3) / C(48,5) ~ 0.9%. [also some chance of a straight, or a flush…] Using P(Gordon wins) is about 18%, so the odds against this are: P(A c )/P(A) = 82% / 18% = 4.6 (or “4.6 to 1” or “4.6:1”)

5. Random variables. A variable is something that can take different numeric values. A random variable (X) can take different numeric values with different probabilities. X is discrete if all its possible values can be listed. If X can take any value in an interval like say [0,1], then X is continuous. Ex. Two cards are dealt to you. Let X be 1 if you get a pair, and X is 0 otherwise. P(X is 1) = 3/51 ~ 5.9%. P(X is 0) ~ 94.1%. Ex. A coin is flipped, and X=20 if heads, X=10 if tails. The distribution of X means all the information about all the possible values X can take, along with their probabilities.

6. cdf, pmf, and density (pdf). Any random variable has a cumulative distribution function (cdf): F(b) = P(X < b). If X is discrete, then it has a probability mass function (pmf): f(b) = P(X = b). Continuous random variables are often characterized by their probability density functions (pdf, or density): a function f(x) such that P(X is in B) = ∫ B f(x) dx.

7. Expected Value. For a discrete random variable X with pmf f(b), the expected value of X = ∑ b f(b). The sum is over all possible values of b. (continuous random variables later…) The expected value is also called the mean and denoted E(X) or . Ex: 2 cards are dealt to you. X = 1 if pair, 0 otherwise. P(X is 1) ~ 5.9%, P(X is 0) ~ 94.1%. E(X) = (1 x 5.9%) + (0 x 94.1%) = 5.9%, or Ex. Coin, X=20 if heads, X=10 if tails. E(X) = (20x50%) + (10x50%) = 15. Ex. Lotto ticket. f($10million) = 1/choose(52,6) = 1/20million, f($0) = 1-1/20mil. E(X) = ($10mil x 1/20million) = $0.50. The expected value of X represents a best guess of X. Compare with the sample mean, x = (X 1 + X 1 + … + X n ) / n.

Some reasons why Expected Value applies to poker: Tournaments: some game theory results suggest that, in symmetric, winner- take-all games, the optimal strategy is the one which uses the myopic rule: that is, given any choice of options, always choose the one that maximizes your expected value. Laws of large numbers: Some statistical theory indicates that, if you repeat an experiment over and over repeatedly, your long-term average will ultimately converge to the expected value. So again, it makes sense to try to maximize expected value when playing poker (or making deals). Checking results: A great way to check whether you are a long-term winning or losing player, or to verify if a certain strategy works or not, is to check whether the sample mean is positive and to see if it has converged to the expected value. (Greenstein vs. Farha….)