Simulation Patterns

Scenario Payoff

Reusing Outcomes

A payoff simulation maps scenario labels to numeric gains or losses. Changing the stake scales every simulated payoff.

Program

Play the script to change the stake and watch the average payoff scale.

scenario_payoff.R 
scenarios <- c("win", "lose", "win", "win", "lose", "lose")
stake <- 
payoff <- ifelse(scenarios == "win", stake * 2, -stake)
average <- mean(payoff)
label <- paste("avg", average)
cat(label, "\n", sep = "")

scenarios <- c("win", "lose", "win", "win", "lose", "lose")
stake <- 
payoff <- ifelse(scenarios == "win", stake * 2, -stake)
average <- mean(payoff)
label <- paste("avg", average)
cat(label, "\n", sep = "")

scenarios <- c("win", "lose", "win", "win", "lose", "lose")
stake <- 
payoff <- ifelse(scenarios == "win", stake * 2, -stake)
average <- mean(payoff)
label <- paste("avg", average)
cat(label, "\n", sep = "")
ifelse `ifelse(condition, yes, no)` maps each scenario to a payoff.
scenario vector A scenario vector can be reused while changing assumptions such as `stake`.
mean `mean(payoff)` summarizes the simulated payoff distribution.