Question

Suppose event A has a 0.98 probability of occurring, and event B has a 0.95 probability of occurring-both high probabilities Compute the odds for event A and the odds for event B. Comment on the relative difference between the odds for the

two events compared to the relative diference between the probabies. How are the odds deceptive in this case?
The odds for event A are
(Round to three decimal places as needed.)

Answer 1

Explanation:

Probability is the ratio between number of successes to all events.

Probability = success / events

Odds are the ratio between number of successes to number of failures.

Odds = success / failure

If event A has a probability of 0.98, then there are 98 successes per 100 events, which means there are 98 successes per 2 failures. The odds of event A are 98/2 = 49/1.

If event B has a probability of 0.95, then there are 95 successes per 100 events, which means there are 95 successes per 5 failures. The odds of event B are 95/5 = 19/1.

The odds are relatively far apart compared to the probabilities. They make it seem that event A is much more likely than B, when in reality they have about the same probability.