Suppose you have a sporting event with m different outcomes for which the odds satisfy Σi=1170; < 1. Which of the following statements are true?a. It is possible to construct a betting strategy that produces the constant profit £1 whatever the outcome i.b. There is no risk-free profit here, you always have to take some risk in order to win.O c.It is possible to construct a betting strategy that produces the constant profit £2 whatever the outcome i.Od. There exists an arbitrage opportunity in this case.O e. There exist risk-neutral probabilities in this case.

Given a sporting event with m different outcomes where the odds oi satisfy the inequality <1, we…

Answered: m Suppose you have a sporting event…

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter8: Sequences, Series,and Probability

Section: Chapter Questions

Problem 41CT: On a game show, a contestant is given the digits 3, 4, and 5 to arrange in the proper order to form...

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Similar questions

On a game show, a contestant is given the digits 3, 4, and 5 to arrange in the proper order to form the price of an appliance. If the contestant is correct, he or she wins the appliance. What is the probability of winning when the contestant knows that the price is at least $400?
Consider a carnival game where a player is given two chances to throw a ball to hit a moving target. Suppose the probability of hitting the target per throw is 0.15. Let X be the number of times the target is hit per game. A. Suppose each game costs $2 dollars to play and a player wins $10 each time the target is hit. So if Y is the amount gained by a player per game, we have the following equation Y=10X-2. Find the expected amount gained by the player per game if this game is repeated many times. B. Find the standard deviation of the amount gained by the player per game if the game is repeated many times.
A customer for a home insurance policy owns a $200,000 home. The probability is 0.1% that the home will be totally destroyed by fire, and the probability is 0.5% that the home will suffer a 50% loss due to fire. Ignoring all other partial losses, the insurance company is interested in determining what premium it should charge for a policy just to break even? Let ? = ?ℎ? ?????? ?? ???????????? ???? ?? ?ℎ? ????????. Calculate the premium that the insurance company should charge for a policy to break even. Hint: use the probability distribution table you made to find the sample space of the r.v. X
a) When you bet on a race-horse with odds of m-n, you stand to win m rands for every bet of n rands if your horse wins; for instance, if the horse you bet is running at 5-2 and wins, you will win R5 for every R2 you bet (i.e. R2 bet will return R7). You are first required to compensate an amount of R5 as an entrance fee in order to bet on a race-horse. Here are some actual odds from a 1992 race at Belmont Park. The favourite at 6-2 was Pleasant Tap. The second choice was Thunder Rumble at 7-2, while the third choice was Strike the Gold at 3-1. Assume you are making a R10 bet on one of these horses. The payoffs are your profits. (If your horse does not win, you lose your entire bet and the entrance fee. Of course, it is possible for none of your horses to win). Set up the reward payoff matrix.
Suppose that an electronics store runs a promotion. At the cash register, each separate item is independently given an instant discount. The discount amounts and chances are: Discount 25% off 10% off None Probability 0.05 0.35 0.60 This means two items might get the same discount or they could get different discounts. I will purchase a camera priced at $200 and a video game priced at $80. Let X be the total amount saved in dollars at the cash register. It is possible that we wont save any money at all. What is the chance of this? P(X = 0 ). Express your answer as a proportion using 2 decimal places.

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