Quote:
Originally Posted by Mike Kelley
Why would you though? When there is a clear limit in a table stakes game that you can win or lose in 100 hands. If it's HU the most you can win is 100x100bb's or 10,000 bb's which is a long ways from infinity last time I checked. If it's full ring the most you can lose per 100 hands is 100x100 or 10,000 bb's. The most you could win is 80,000 bb's
Because the normal distribution is well understood. If variables are normally distributed then we can make perfect predictions about the likelihoods of various events; moreover, even when variables aren't normally distributed, for some types of distributions, the central limit theorem assures us that the mistakes we make by using a normal approximation become arbitrarily small as we increase our sample size.
Incidentally, if our winrate were normally distributed with average 0 and SD per 100 hands of 35 ptBBs, then winning more than winning more than 80,000 bbs in 100 hands has a mind-boggling teeny probability. Without taking the time to actually calculate it, I would estimate this probability to be approximately 1 in 10^(300,000). The flaw with approximating poker winnings as normally distributed is not to a significant degree introduced by allowing arbitrarily large winrates. With the above approximation, winning 560 bbs in a 100 hand sample would occur with probability around 1 in 1.5 quintillion (if you played a hand once a second since the universe began, you would have expected this to happen about twice) - the normal approximation
underestimates the likelihood of extreme events, not overestimates (by extreme, I mean things in the rare but possible region, when you get to large enough variations that the actual probability is 0 the approximation still indicates that these events are possible, but so rare as to not effect anything).