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# Odds. In Exercise, nswer the given questions that involve

## Problem 45BB Chapter 4.2

Elementary Statistics | 12th Edition

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Elementary Statistics | 12th Edition

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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.

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Step 4 of 4

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Odds. In Exercise, nswer the given questions that involve

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