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.
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.
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Transcribed Image Text: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.
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