Question

We have seen how to convert specified odds from a "fair bet" into the gamblerâs belief about the likelihood of an event happening. The following are related.a. Torik gives 5:3 odds that someone will walk in late for class tomorrow. What probability does lie assign for this event? b. Mikko believes there is a 60% chance that at least five students from this class will be at the next basketball game. If he were to set up odds, what would they be? c. Change the 60% to 75%. Now would would be the odds?

Answer 1

To find the probability assigned to an event based on the specified odds, use the formula: Probability = 1 / (odds + 1). Torik's odds of 5:3 would result in a probability of 0.125 or 12.5%. Mikko's belief of a 60% chance would correspond to odds of 2:3, while a 75% chance would correspond to odds of 1:3.

Step-by-step explanation:

In order to find the probability assigned to an event based on the specified odds, we can use the formula: Probability = 1 / (odds + 1)

a. Torik gives 5:3 odds, so the probability would be: 1 / (5 + 3) = 1/8 = 0.125 or 12.5%

b. If Mikko believes there is a 60% chance of at least five students attending a basketball game, the odds would be: (100 - 60) / 60 = 40/60 = 2/3. This means that the odds would be 2:3.

c. If we change the probability to 75%, the odds would be: (100 - 75) / 75 = 25/75 = 1/3. This means that the odds would be 1:3.