Question

Gamblers need to understand vigorish (also called vig or juice), but web definitions (e.g., urban dictionary) can be confusing. Here's a clearer explanation. If you are betting without a bookie, then the amount of the bet is the amount you lose or the amount you win. That is, if you bet $100, then you put $100 somewhere that everyone can see. If you lose, then you lose that $100. If you win, you get your $100 back and you get another $100. When you bet with a bookie, you have to pay a service charge, called the vigorish. If the bookie charges 12% vigorish, then you have to pay an additional $12 to place a $100 bet. If you lose, you lose the whole $112 that you gave the bookie. If you win, you get back your $112 and you get an additional $100. So essentially, you only pay the service charge if you lose. Suppose that a novice bettor doesn't know about vigorish. They make a bet by giving $100 to a bookie. If they lose, they get nothing back, which is just what the novice bettor expects. However, if they win, they do not get back $100. They get back less. This is not what the novice bettor expects. It can be upsetting. Create a set of equations that calculates the amount of winnings (profit) that bettors gets back if they win. It will need two known quantities: the vigorish and the amount given to the bookie (called the amount 'laid'). Test to see that it outputs $255 as the winnings when the vigorish is 15% and the amount laid is $300

Need work (equations and variables). Thank you!

Answer 1