Solution Found!
Odds. In Exercise, nswer the given questions that involve
Chapter 4, Problem 45BB(choose chapter or problem)
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?
Questions & Answers
QUESTION:
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?
ANSWER: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.