I actually am not so sure about the math here. I post to consult experts here. Let me try another method for this calculation:
If we bet 2/3 unit on the main game blackjack, the variance=(2/3) x1.3;
if we bet 1/3 unit on the side bet insurance, the variance = (1/3) x2.
Therefore. The combined variance of betting both is
(2/3) x1.3 +(1/3) x2= 1.53
Still greater. We need a mathematician here!
Bookmarks