Question

Suppose the odds for a bet are 12:1. Your friend tells you that he thinks the odds are too generous. Select all of the odds that are less generous.

1) 1:1
2) 5:1
3) 10:1
4) 15:1

Answer 1

Less generous odds than 12:1 imply a higher probability of the event occurring; thus, the options that represent less generous odds are 1:1, 5:1, and 10:1.

Step-by-step explanation:

In the context of betting, the phrase "odds are too generous" implies that the chance of a particular outcome is given more favor than it realistically should. In the case of 12:1 odds, this implies a relatively low probability of an event occurring and consequently, a high payout for the bettor if they win. These odds suggest that for every 1 time the event occurs, it is expected not to occur 12 times. To find less generous odds, we must look for scenarios where the chance of the event occurring is believed to be greater (hence, lower potential payout).

• 1:1 odds are less generous because they represent an equal chance of winning and losing.
• 5:1 odds are less generous because they indicate a higher probability of winning compared to 12:1 odds.
• 10:1 odds are less generous as well but still offer a relatively high reward.
• 15:1 odds are more generous, as they offer a higher payout than 12:1 odds.

From the options given, 1:1, 5:1, and 10:1 are all less generous than 12:1 odds.