×
Log in to StudySoup
Get Full Access to Statistics - Textbook Survival Guide
Join StudySoup for FREE
Get Full Access to Statistics - Textbook Survival Guide

Odds. In Exercise, nswer the given questions that involve

Elementary Statistics | 12th Edition | ISBN: 9780321836960 | Authors: Mario F. Triola ISBN: 9780321836960 18

Solution for problem 45BB Chapter 4.2

Elementary Statistics | 12th Edition

  • Textbook Solutions
  • 2901 Step-by-step solutions solved by professors and subject experts
  • Get 24/7 help from StudySoup virtual teaching assistants
Elementary Statistics | 12th Edition | ISBN: 9780321836960 | Authors: Mario F. Triola

Elementary Statistics | 12th Edition

4 5 1 367 Reviews
14
5
Problem 45BB

Odds. ?In Exercise?,? nswer the given questions that involve odds. Kentucky Derby Odds When the horse Super Saver won the 136th Kentucky Derby, a $2 bet that Super Saver would win resulted in a return of $18. a.? How much net profit was made from a $2 win bet on Super Saver? b.? What were the payoff odds against a Super Saver win? c. Based on preliminary wagering before the race, bettors collectively believed that Super Saver had a 0.093 probability of winning. Assuming that 0.093 was the true probability of a Super Saver victory, what were the actual odds against his winning? d. If the payoff odds were the actual odds found in part (c), how much would a $2 win ticket be worth after the Super Saver win?

Step-by-Step Solution:

Step-by-step Solution Step 1 of 4 (a) If Super Saver would win and resulted in return of $18 when a $2 bet was placed, the net profit made from $2 bet can be computed by subtracting the bet to the total money returned after winning. $18 - $2 = $16 Hence, the net profit is $16. Step 2 of 4 (b) We know that the amount of bet to Super Saver is $2 and the net profit is $16 when Super Saver win. So the payoff odds is: Payoff odds= net profit : amount of bet = 16:2 = 8:1 Thus, the payoff odds is 8:1.

Step 3 of 4

Chapter 4.2, Problem 45BB is Solved
Step 4 of 4

Textbook: Elementary Statistics
Edition: 12
Author: Mario F. Triola
ISBN: 9780321836960

Unlock Textbook Solution

Enter your email below to unlock your verified solution to:

Odds. In Exercise, nswer the given questions that involve

×
Log in to StudySoup
Get Full Access to Statistics - Textbook Survival Guide
Join StudySoup for FREE
Get Full Access to Statistics - Textbook Survival Guide
×
Reset your password