In Exercises 25–32, set up the payoff matrix. Betting When you bet on a racehorse with odds of m – n , you stand to win m dollars for every bet of n dollars if your horse wins; for instance, if the horse you bet is running at 5–2 and wins, you will win $5 for every $2 you bet. (Thus, a $2 bet will return $7.) Here are some actual odds from a 1992 race at Belmont Park, New York. 21 The favorite at 5–2 was Pleasant Tap, the second choice was Thunder Rumble at 7–2, while the third choice was Strike the Gold at 4–1. Assume that you are making a $10 bet on one of these horses. The payoffs are your winnings. (If your horse does not win, you lose your entire bet. Of course, it is possible for none of your horses to win.)
In Exercises 25–32, set up the payoff matrix. Betting When you bet on a racehorse with odds of m – n , you stand to win m dollars for every bet of n dollars if your horse wins; for instance, if the horse you bet is running at 5–2 and wins, you will win $5 for every $2 you bet. (Thus, a $2 bet will return $7.) Here are some actual odds from a 1992 race at Belmont Park, New York. 21 The favorite at 5–2 was Pleasant Tap, the second choice was Thunder Rumble at 7–2, while the third choice was Strike the Gold at 4–1. Assume that you are making a $10 bet on one of these horses. The payoffs are your winnings. (If your horse does not win, you lose your entire bet. Of course, it is possible for none of your horses to win.)
Solution Summary: The author explains the payoff matrix of the situation where you bet on a racehorse with odds of m-n, you stand to win n dollars if your horse wins where the favorite at
Betting When you bet on a racehorse with odds of
m
–
n
, you stand to win m dollars for every bet of n dollars if your horse wins; for instance, if the horse you bet is running at 5–2 and wins, you will win $5 for every $2 you bet. (Thus, a $2 bet will return $7.) Here are some actual odds from a 1992 race at Belmont Park, New York.21 The favorite at 5–2 was Pleasant Tap, the second choice was Thunder Rumble at 7–2, while the third choice was Strike the Gold at 4–1. Assume that you are making a $10 bet on one of these horses. The payoffs are your winnings. (If your horse does not win, you lose your entire bet. Of course, it is possible for none of your horses to win.)
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