hrothgar, on Nov 13 2005, 02:24 PM, said:
50 flips of a coin are statistically not significant. You might have a much higher heads streak (or tails, btw) than in your example.
And you cannot anticipate that next run will be without significant deviations.
Over a truly long run (1 million tosses? 10 millions? 100 millions?) it is reasonable to anticipate a wash-out (or at least very close results).
The same applies to the lottery example. Let's make it simple: you do not choose random numbers, you just buy a ticket. If there are 10 millions ticket on sale, your chance of winning the first prize are 1 against 10 millions. If the promoter sells all of the tickets, someone will have to win (100% chances), but the individual chance of landing the first prize are still 1 against 10 millions.
Poker tournaments are similar. Let's say everyone pays the same fee: 10 dollars.
Let's postulate that there are 3 classes of players: good (5%), average (30%) and poor (65%). The number of wins per class are not proportional to the number of players in that class. My expectation would rather be that wins are inversely proportional to the number of player in a given class, or something similar. This means that a poor player can win, but it is unlikely; more significant is that the poor players class have to invest a very large amount of money for a small return; the good players class would be in the mirror position: small investment for a good return.
Rubber bridge is a classic example: very seldom poor players last long playing for high stakes (unless they are quite rich: but this would not be high stakes for them).
Same with poker. Players tend to gravitate into a table where there skills (or lack of) is close to the table average.

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