Question 299296
In March 2004, vegas.com gave odds on who would win the 2004 World Series. They gave the New York Yankees 2 to 1 odds and gave the Boston Red Sox 5 to 2 odds. (these are odds against)
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Fact: odds against E = [P(not E)]/P(E)]
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a.) convert both odds to the probability of winning.
NY Yanks:
odds against = 2:1
P(not winning) = 2/3
P(winning) = 1/3
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Boston:
odds against = 5:2
P(not win) = 5/7
P(win) = 2/7
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b.) who did they think was more like to win and why?
Compare 1/3 and 2/7
Cross-multiply to get: 7 ? 6
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7>6, so 1/3 > 2/7
They favor the Red Sox.
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c.) If you had bet $10 on the Boston Red Sox, and they went on to win the World Series, how much money did you win, in addition to having your wager returned?
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I'm not familiar with how odds pay off.
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Cheers,
Stan H.