Assessed contributions and expected value in MMA
1) Implicit probability of a decimal fee
In decimal format, the implied probability is calculated as 1 / quota. If the quota is 2.00, The implicit probability is 50%.
Formula: Implicit probability = 1 / quota
2) What is the expected value (VV)
The expected value estimates the average gain or loss of a long-term bet. A bet has value if your estimated probability is greater than the implied share.
Formula per unit wagered: EV = (p × quota) - 1
Where p is your estimated real probability (between 0 and 1).
3) Practical example
If a quota is 2.30, its implicit probability is 43.48%. If you estimate the fighter wins 48% of the time, then Ev = (0.48 × 2.30) - 1 = 0.104. That's equivalent to +10.4% per unit in expectation.
4) Where the gambler error usually is
- Confused high quota with “value” automatically.
- Do not adjust the estimation by matching styles.
- Ignoring the margin of the house.
- Overlay the last combat (recense bias).
5) Simple operating rule
Before betting, define a probability of your own. If you can't justify it with style, rhythm and defense data, there is no "pepper." No estimate, no "ev.