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Betting

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Based on the betting model in the Two-horse race_01.xls spreadsheet, prove that no matter what the posted odds and the bets received are, the expected loss/gain is always zero.

How can the bookmaker make sure he can earn a certain amount that is above the expected zero income from the betting?

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Answers questions on payoffs from betting. The expert proves that no matter what the posted odds are.

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(1) Based on the betting model in the Two-horse race_01.xls spreadsheet, prove that no matter what the posted odds and the bets received are, the expected loss/gain is always zero.

Let the odds be n-to-m
Probability of first horse winning / second horse losing = m / (n+m)
Probability of first horse losing / second horse winning ...

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