For those of you old enough to remember, Huey Mahl was one of the contemporaries of Mike Lee, Mort Olshan, Billy "The Greek" Vassal, Phil Steele, and Kelso Sturgeon...
John Kelly was an electrical engineer from AT&T assigned to explain to his department's superiors a very technical subject pertaining to the distribution of electrical energy along power lines of varying efficiency...
He used an analogy...
He set up a hypothetical gambling shop where bets were past-posted a few minutes after baseball games had started...
...since the outcome of the games had not yet been determined... the bettors were working to some advantage with the inside info...
..the quirk is that the gambling analogy was perfect for gambling plays...
Canadian statistician, William Ziemba, used Kelly to look for favorable payouts in SHOW POOLS on prohibitive horse-racing favorites during the later 8th and 9th races....
...for even-money payouts...the math is much simpler...you bet in % what your advantage actually is in %
Mahl mused that at the time Kelly was composing his masterpiece...it had just been a short time since US Senator and losing VP candidate, Estes Kefauver(D-Tenn) had conducted hearings into gambling and organized crime...
...wow!...what a great way to come up with the perfect betting system for those fortunate few able to work a small positive edge over the house
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