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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?

    See attached file for full problem description.

    © BrainMass Inc. brainmass.com October 9, 2019, 7:24 pm ad1c9bdddf
    https://brainmass.com/statistics/probability/prove-matter-posted-odds-117088

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    Please see the attached file.

    (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 ...

    Solution Summary

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

    $2.19