Question

You make a $20 bet with your friend. You both settle-up after the event if over. Thus, no money changes hands initially. You bet on a football team to win that pays 4:5 if it wins.

1 How much will you collect from the bookie if your team wins?

2. When you claim your money from the friend, is the money received profit or a return? Explain.

3. Was the bet odds on, odds against, or even money? Explain.

4. What does the 4:5 payoff odds tell you about the team?

5. Is this a situation, implied or actual odds?

Answer 1

(there are more than 4 parts, as per policy i am answering first 4 parts)

1.

money to collect if win = $20 * odds

= $20 * (4)/5

= $16 to be collected

2.

The money is profit as you had paid nothing initially

3.

it was ood against because you get paid in the ratio of teh odds against winning in abet so the ratio of payout is given therefore it is odd against

4.

It tells us that in 9 games it wins 5 times and looses 4 times as the ratio of payout is opposite to ratio of winning and loosing

(please UPVOTE)