odds and probabilities: '3 to 5 in favor', '3/8 probability'
- Thread starter panaloca8
- Start date
Well, I am obviously having problems with probabilities. I just want to know how an odd in favor of an event is 3 to 5 and then the probability of that event is 3/8. I am clueless. How does this odd equal that probability??
Re: odds and probabilities: '3 to 5 in favor', '3/8 probabil
Hello, panaloca8!
If your probability of winning is \(\displaystyle \frac{3}{8}\), then your probability of losing is \(\displaystyle \frac{5}{8}\)
Your ratio of wins-to-losses is: \(\displaystyle \,\frac{3}{8}\,:\,\frac{5}{8}\,\) or \(\displaystyle \,3\,:\,5\)
\(\displaystyle \;\;\)and that is your odds of winning.
Odds are used to ensure a "fair" bet.
If you were playing game in which you'd win only \(\displaystyle \frac{3}{8}\) of the time.
\(\displaystyle \;\;\)it would unwise (dumb!) to bet "even money" . . . right?
But if you put up $3 and they put up $5, the game would be "fair".
\(\displaystyle \;\;\)The expected value is $0 . . . Neither side would have an advantage.
Hello, panaloca8!
If your probability of winning is \(\displaystyle \frac{3}{8}\), then your probability of losing is \(\displaystyle \frac{5}{8}\)
Your ratio of wins-to-losses is: \(\displaystyle \,\frac{3}{8}\,:\,\frac{5}{8}\,\) or \(\displaystyle \,3\,:\,5\)
\(\displaystyle \;\;\)and that is your odds of winning.
Odds are used to ensure a "fair" bet.
If you were playing game in which you'd win only \(\displaystyle \frac{3}{8}\) of the time.
\(\displaystyle \;\;\)it would unwise (dumb!) to bet "even money" . . . right?
But if you put up $3 and they put up $5, the game would be "fair".
\(\displaystyle \;\;\)The expected value is $0 . . . Neither side would have an advantage.