Kelly Bankroll Calculation

[plainolebill]

I'm math challenged and I'm reading Dick Mitchell's Commonsense Betting. On page 52 he gives a formula to calculate the potential Kelly br increase. Here's step 2 and 3:

B = 1,000 x (1-.03)7 x (1.09)3
B = 1,000 x .8080 x 1.2950

The 7 and 3 outside the parens are in superscript and represent wins & losses, I don't know what he's doing there. Can someone fill me in.

Thanks

[BillW]

I'm math challenged and I'm reading Dick Mitchell's Commonsense Betting. On page 52 he gives a formula to calculate the potential Kelly br increase. Here's step 2 and 3:

B = 1,000 x (1-.03)7 x (1.09)3
B = 1,000 x .8080 x 1.2950

The 7 and 3 outside the parens are in superscript and represent wins & losses, I don't know what he's doing there. Can someone fill me in.

Thanks

Bill,

Those are exponents. "Raised to the power of 7" and "Raised to the power of 3".

[plainolebill]

Thanks Bill, That didn't register because the sums were so small. I shouldn't have skipped all those classes back in 58'.