The amount that the game's payback percentage will vary for a given number of games played is known as what?

• A. volatility index
• B. theoretical hold versus actual hold report
• C. standalone progressive jackpot
• D. spread betting

Answer: (A)

The concept here is volatility. The payback percentage is the theoretical return players can expect over a very long run, but in any shorter sequence of spins or plays, the actual return can swing around that figure because outcomes are random. The amount those swings vary for a given number of plays is described by volatility: high volatility means bigger swings and more fluctuation from the theoretical hold in a finite sample, while low volatility means the observed return stays closer to the theoretical value. As you play more games, the observed payback tends to align more with the theoretical percentage due to the law of large numbers. The other options don’t capture this idea: a theoretical hold versus actual hold report is a particular analysis, a standalone progressive jackpot is a prize type, and spread betting is a wagering method.