For me that is bordering on, "there have been nine reds in a row so that means that the percentage call next time is black".
No. And it's so far off beam I don't no where to start. In the first case, roulette would fall within the realms of random distribution. The probability of the next spin would still be 50/50 (well technically speaking it would be something like 48.5/48.5). The laws of probability would only be gainst you if you'd bet on 10 consecutive reds, but by that time you've reduced those odds right down. Racing, and sports betting isn't random however, as things occur for a reason. Sometimes we understand these reasons, sometimes they're a bit more tenuous and sometime swe don't (but they still occur).
Let me give you a crude example and an offer (which I don't expect you to take me up on). In every major 100 metres athletics final until the day we die, I am happy to back the black men for £1000 if you'll back the white men in the field to the same amount?
There is a greyer area which was emphasised to be an old economics lecturer.
"Alun" he said "If you were chancellor of the exchequer (god forbid) and I could demonstrate to you that for the last 100 years consecutively, the annual conception rate in Aberdeen, just so happened to be identical to three decimal places to the UK's GDP growth, would you be prepared to use this as an indicator in making a forecast?"
Although this might invite a few answers, as it also verges into philosophy, it's a classic example of seemingly unrelated correlation where the knowledge deficit is such that we can't link the two by way of course effect, and yet the figures keep coming back year after year to a level which we might want to consider even if we don't understand why?
Incidentally, by way of slight digression since he's recently died. Patrick McGoohan in the Prisoner was confronted with an all telling computer that knew the answer to everything and could calculate everything. The people came to rely on this 'teacher' or was it 'professor'? and no where dare question its output. When ever they had any reservation they asked it, it told them, they did it. Number six duly blew it up by asking it the question that no one could answer, and it overloaded in smoke and flames.
What was the question? It's not as irrelevant as it sounds, as it goes to the heart of the argument about stats
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