2) Suppose $50,000 was bet in total on a race. $15,000 of this was place $2,000 was bet for Bella to place, and $1.200 was bet for Bubbly to place. The track's take is 15% a) What are the payout odds on Bella to place? b) If you bet $20 on Bella to place, what is your profit if you win? c) What are the payout odds on Bubbly to place? d) What is the $2 payout on Bubbly to place?

2) Suppose $50,000 was bet in total on a race. $15,000 of this was place $2,000 was bet for Bella to place, and $1.200 was bet for Bubbly to place. The track's take is 15% a) What are the payout odds on Bella to place? b) If you bet $20 on Bella to place, what is your profit if you win? c) What are the payout odds on Bubbly to place? d) What is the $2 payout on Bubbly to place?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter15: Strategic Games

Section: Chapter Questions

Problem 10MC

See similar textbooks

Similar questions

1 . Individual Problems 17-2 You're a contestant on a TV game show. In the final round of the game, if contestants answer a question correctly, they will increase their current winnings of $3 million to $4 million. If they are wrong, their prize is decreased to $2,250,000. You believe you have a 25% chance of answering the question correctly. Ignoring your current winnings, your expected payoff from playing the final round of the game show is . Given that this is , you play the final round of the game. (Hint: Enter a negative sign if the expected payoff is negative.) The lowest probability of a correct guess that would make the guessing in the final round profitable (in expected value) is . (Hint: At what probability does playing the final round yield an expected value of zero?)
You are evaluating the possibility that your company bids $150,000 for a particular construction job. (a) If a bid of $150,000 corresponds to a relative bid of 1.20, what is the dollar profit that your company would make from winning the job with this bid? Show your work. (b) Calculate an estimate of the expected profit of the bid of $150,000 for this job. Assume that, historically, 55 percent of the bids of an average bidder for this type of job would exceed the bid ratio of 1.20. Assume also that you are bidding against three other construction companies. Show your work.
It's the Superbowl. The Seahawks are on the goal line with only a few seconds to go. They can pass or they can run. Nature chooses the outcome of the play. Consider the payoffs in the Table. Let p- probability of touchdown, 1-p-probability of losing the ball. Calculate the expected payoffs from each play. Each is worth one point. What is the expected payoff from run? Simplify your answer. 500p-100 1500p-500 O O 500 01-P SEAHAWKS Fun NATURE 1000 400 Love Ball 100
A wheel of fortune in a gambling casino has 54 different slots in which the wheel pointer can stop. Four of the 54 slots contain the number 9. For a 1 dollar bet on hitting a 9, if he or she succeeds, the gambler wins 10 dollars plus the return of the 1 dollar bet. What is the expected value of this gambling game? What is the meaning of the expected value result?
Well explained answer and well labeled
The market demand for the newest smartphone is 1 million units. The selling price for the LG phone is $400.00. The cost is $100 per unit. LG currently has market share of 10 percent. The marketing and sales expense is $5 million. Assume market demand grows by 20%. Given the 20% increase in market demand, LG maintains its market share of 10%, selling price of $400, unit cost of $100, and marketing and sales expense of $5 million. What is the new net marketing contribution (NMC)? O a. $36 million Ob. $31 million O. S7 million O d. $12 million
Question 5 You negotiate with a retailer over a contract according to which the retailer would buy a large fraction of your current production for next year. The retailer is perfectly informed about consumer demand, but you do not know whether demand is high or low. You only know that the probability for high demand is 80%. If demand is high, the retailer's profit is £5 million minus what he pays to you according to your contract. If demand is low, the retailer's profit is £3 million minus what he pays to you. Your costs of producing the output specified in the contract are £1 million. You can make sequential offers for the retailer's total payment for you to deliver a fixed quantity of your production. As you know that your competitor is also seeking a similar contract with this retailer, and the retailer can only supply one firm due to limited shelf space, you know that you can only make at most two offers. If your first offer is rejected, the retailer will strike the deal with your…
Amid growing concerns that a virus outbreak from Asia will turn to a global pandemic, Ivan the Investor is weighing his options of investing in energy markets, airlines/travel, or emerging technologies such as companies specializing in video conferencing. Ivan sees the near future as bringing one of three possibilities: the virus will be controlled and will not spread globally; there we will be a short term global pandemic that causes disruptions in the immediate future, but will then be controlled within 18-24 months; there will be a global pandemic that causes long-term disruptions for longer than two years. On the basis of past experience, the Ivan estimates the following rates of return (measured in annual interest rates) for each eventuality. Future Virus is Controlled Short-term Pandemic Long-term Pandemic Investor 0% 8% 5% Energy Markets -5% -8% 10% -5% 6% Travel Technology Sector 4%
Half of all potential customers would pay $16 for your product but half would only pay $10 but you cannot tell them apart. Your marginal costs are $4. If you set the price at $16, the expected profit is: a) $3 b) $4 c) $5 d) $6
Player 2 Strategy A Strategy B Player 1 Strategy A 3, 3 2, 2 Strategy B 2, 2 1, 1 a) Is A an evolutionary stable strategy? How do you know? b) Is B an evolutionary stable strategy? How do you know? c) Is there any mixed strategy that places positive probability on B that could be an evolutionary stable strategy? How do you know?
A risk-neutral firm produces chemical products, and its objective is to maximize expected profit. There is a risk that there will be an accident during the production process, and dangerous chemical products will be released into the ocean, polluting the water. To reduce the risk of an accident, the firm can choose Low or High investment in safety. Low Investment in Safety_ Cost for firm= $0 Probability of an Accident = 80% Probability of No Accident =20% High Investment in Safety Cost for firm= $150 Probability of an Accident = 20% Probability of No Accident = 80% The Government wants to reduce the risk of an accident, but the Government cannot observe the fir m's investment in safety. Therefore there is a moral hazard problem. However, the Government can observe whether an accident occurred or not. So the government decides to create a fine (penalty): if an accident occurs, the firm must pay a fine F to the Government. If an accident does not occurs, then the firm does not have to…
A gym membership charges their current members a monthly fee on the 1" of the month. Monthly churn rate (the probability of a member ending their membership) is 4%. Profit from the monthly membership fee is $10 per member; and the recruitment cost (advertising and promotions) for a new member are $200. What is the per member expected profit to the gym?