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 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.
