The Balanced Book Hypothesis states that: A. Sportsbooks attempt to offset the betting imbalance of one...
The Balanced Book Hypothesis states that:
| A. |
Sportsbooks attempt to offset the betting imbalance of one game with the opposite imbalance on another game |
|
| B. |
Sportsbooks attempt to balance the betting dollars on each side of the proposition |
|
| C. |
Sportsbooks continually set pointspreads too high |
|
| D. |
Sportsbooks try to set pointspreads close to zero |
Homework Answers
Option B.
Explanation: According to the Balanced Book Hypothesis, points spreads are set by sportsbooks to balance the betting action evenly on each side of a proposition. The hypothesis was challenged by Steven Levitt in 2004.
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